The FCA has extended the Senior Managers and Certification Regime (SM&CR) to solo-regulated firms, including senior managers and certification staff in those firms. The SM&CR already applies to the banking and...
Category - Uncategorized
FIN. TeamRegulators develop work on Operational Resilience
The BoE, the PRA and the FCA have developed a joint policy summary setting out new requirements for operational resilience for regulated firms and financial market infrastructures (FMI). The work is spearheaded by...
Emma RadmorePRA to modernise outsourcing and risk management expectations
In the light of the development of various European Guidelines regarding outsourcing requirements, as well as recent practical ‘failures’ such as IT systems going down, the PRA is consulting on proposals to...
Effects of MLD5 on lenders to overseas entities
We have written an article on the effects of MLD5 and the Registration of Overseas Entities Bill (whenever it is now passed) on security over properties owned by overseas entities.
Joseph DeanMark Carney named UN’s Special Envoy for Climate Action and Finance
On 1 December 2019 the United Nations Secretary-General António Guterres announced the appointment of the Governor of the Bank of England, Mark Carney, as UN Special Envoy for Climate Action and Finance. Mark Carney...
EP publishes position on NPLs
The European Parliament has published its draft report on the proposal for a Directive on credit servicers, credit purchasers and the recovery of collateral. The proposal is intended to make sales of non-performing...
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...
Emma RadmoreFCA 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...
PRA fines banks £43.9m for regulatory reporting failures
The PRA has announced that a combined penalty has been imposed on three Citi entities of £43.9 million. The penalty arises from failings in their internal controls and governance arrangements, resulting in incomplete...
FCA publishes ‘approving financial promotions’ webpage
In the light of its new temporary restrictions on the financial promotion of ‘mini-bonds’, the FCA has provided guidance for firms approving the financial promotions of unauthorised persons. The new page on...
BIS report on Open Banking and APIs
BIS has published a report that looks at the growing trend in many jurisdictions towards an open banking. In particular, the report focuses on those aspects relating to customer-permissioned data sharing, ie where...
FCA addresses LIBOR transition issues
As part of its work on the transition from LIBOR from 2021, the FCA has published a webpage covering conduct risks arising from the transition. The matters covered are set out in question and answer format, addressing...
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...
Bills not to progress due to election
Parliament has updated its webpages in respect of the Goods Mortgages Bill, the Pension Schemes Bill and the Financial Services Duty of Care Bill. The 2017-2019 Parliamentary Session was dissolved on 6 November ahead...
FSB holds Paris plenary
The FSB Plenary met in Paris to review vulnerabilities in the global financial system and to discuss advances in FinTech. The Plenary also agreed its work programme for 2020. Current vulnerabilities The Plenary...
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...
UK Finance responds to IT failures in the financial services sector
UK Finance has responded to the Treasury Committee’s report into IT failures in the financial services sector. The Treasury Committee criticised the unacceptably high level of failures and called on regulators to...
SRB consults on banks resolvability best practice
The Single Resolution Board has opened a public consultation on its proposed ‘Expectations for Banks’, which sets out at a general level the capabilities banks will be expected to demonstrate in order to...
FCA outlines five steps to drive the future of regulation
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, recently spoke about the FCA’s thoughts on how it approaches the future of regulation. He commented that the FCA will be issuing an...
ESMA to examine reporting issues in annual financial reports
ESMA has set out the matters it will prioritise when looking at the 2019 annual financial reports of listed companies. Among the specific areas of focus, ESMA has underlined the importance of the inclusion of...
EU and Japan hold first joint financial regulatory forum
The Joint EU-Japan financial regulatory forum has held its inaugural meeting. Topics covered at the meeting included: the regulatory cooperation framework under the Japan-EU Economic Partnership Agreement, and the...
FCA publishes feedback statement on climate change disclosures
The FCA has published its proposals for its future work on climate change and green finance, following responses to its Discussion Paper in 2018 . In its work, the FCA will be focusing on three outcomes: Issuers provide...
FCA updates change in control pages
FCA has updated its guidance on how to submit an application for change in control. The page now includes useful tips on what FCA needs to know to deal with the application quickly, and links to all the required forms.
FCA provides Brexit preparations update for firms
The FCA has published an update on the steps firms will be expected to take in the event that there is a hard Brexit. In particular, the FCA reminds EEA passporting firms of the need to notify the FCA by 30 October if...
Queen’s Speech suggests post-Brexit FS Bill
Among the list of legislative proposals referred to in the Queen’s Speech is laws that will provide “certainty, stability and new opportunities” for the financial services sector through a Financial...
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...
Gavin EllisonTreasury approves JMLSG Chapter 17 changes
Treasury has approved revisions to Chapter 17 of Part 2 of the JMLSG guidance. The chapter covers syndicated lending, and has been rewritten by the Loan Market Association. Among the changes are content that: explains...
Government responds on regulatory perimeter
The Government has published its response to the Treasury Committee’s report on the regulatory perimeter and how it could be refined and should be policed. The report had criticised the lack of a formal system for...
BoE to stress test for climate change risks
The Governor of the BoE addressed the inaugural Task Force on Climate-related Financial Disclosures (TCFD) summit in Tokyo yesterday. In his speech, Mr Carney warned of the growing challenges climate change brings, and...
European Banking Authority publishes Communication on preparation for Brexit
The European Banking Authority (EBA) has published a Communication on the remaining issues for financial institutions ahead of the UK’s departure from the EU. In its Communication the EBA urges continued progress...
Government publishes No-Deal Readiness Report
The Government has published its “No-Deal Readiness Report” detailing the UK’s preparedness ahead of Brexit on 31 October. The Report contains a section on financial services which, amongst other...
PRA strengthens individual accountability expectations
The PRA has published PS20/19, ‘Strengthening individual accountability: resolution assessments and reporting amendments’. This Policy Statement sets out: feedback to responses to CP 12/19, ‘Strengthening...
BoE reports on 2018 cyber simulation exercise
BoE has reported on the outcomes of its 2018 sector wide exercise (SIMEX), which tested how the UK finance sector would react to a prolonged and broad cyber attack. The exercise, which took place in real time, involved...
EC sustainable finance classification system to be developed
The Council of the European Union has agreed a position on the proposed EU-wide sustainable finance taxonomy regulation. This would develop a common language for assessing what economic activities can be considered...
Treasury approves JMLSG updates
Treasury has approved updated chapters in Part II of the JMLSG Guidance. The chapters now approved are:
credit unions
asset finance
brokerage services to funds.
Banking industry commits to climate change action
130 international banks, representing one third of the global banking sector by NAV, have signed the new Principles for Responsible Banking. This initiative commits their firms to strategically align their business...
EBA starts 2019 transparency exercise
The EBA has launched this year’s transparency exercise, which will lead to the release in November of up to 2.2 million data points collated from EU supervisory reporting data. The data that will be released for...
Industry associations raise concerns about timetable for sustainability disclosures
A group of European industry associations have written to the European Commission raising concerns about the timing for implementation of the Regulation on disclosures relating to sustainable investments and...
FCA updates on Brexit preparations
In a recent speech, Andrew Bailey, the chief executive of the FCA, provided an update on the FCA’s state of preparation for Brexit, and in particular for a no-deal, no-transition Brexit scenario. However, while Mr...
No more ink? Law Commission confirms validity of electronic signatures
A Law Commission report confirms that electronic signatures can be used to execute documents as an alternative to wet ink signatures in most circumstances. There are some important exceptions and the report only relates...
Suzanne GadoPRA revises Branch Returns for international banks
The PRA has published Policy Statement 17/19, confirming changes to the Return that branches of international banks must complete, and associated reporting guidance. The first revised Returns will need to be submitted...
PRA consults on update to PIN process
The PRA is proposing amendments to its Pre-Issuance Notification regime for capital instruments within the scope of CRR. The proposed amendments reflect changes arising from CRR II, and also the PRA’s experience...
EBA to provide guidance on use of CRR ‘legacy instruments’
The EBA has confirmed that it will be developing communications aimed at providing clarity on the appropriate treatment of capital instruments that, for the purposes of the CRR, are currently classified as ‘legacy...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation covers a number of minor changes to the rules that will be made only if there is a no-deal Brexit on 31 October, and also other miscellaneous amendments including: minor...
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...
ECB speaks about work and priorities for year ahead
The Chair of the Supervisory Board of the ECB has addressed the European Parliament’s Economic and Monetary Affairs Committee at its first ordinary hearing in 2019. Comments covered: key supervisory priorities for...
EC calls for action with publication of no-deal Brexit checklist
The EC is urging EU businesses and citizens to consider whether they are prepared for the UK leaving the UK on ‘no-deal’ terms on 31 October, reminding them in this scenario there will be no transition...
Securitisation Regulation added to Single Rulebook
The EBA has added the Securitisation Regulation and associated RTS and Guidance to its online Interactive Single Rulebook. Consequently the Q&A tool is likewise extended to include this Regulation.
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...
ECB calls for step up in Brexit preparation
ECB is concerned that banks have not progressed as far with their Brexit planning as they had originally indicated they would. ECB notes that it considers the risks of a no-deal Brexit to the overall euro area financial...
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.
Deposit Guarantee Schemes Directive Opinion published
The EBA has published the Opinion on the implementation of the Deposit Guarantee Schemes Directive (DGSD) that it is mandated to submit under article 19(6) of DGSD. The proposals set out in the Opinion include: a...
Feedback on EBA Single Rulebook published
The EBA has published the results of a review exercise it conducted to assess the utility of the Single Rulebook. As might be expected, overall feedback from the competent authorities and selected industry...
EBA publishes Basel III implementation analyses
In the run up to full implementation of Basel III in the EU, the EBA has published an implementation impact study and policy advice set, covering securities financing transactions, operational risk, output floor and...
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...
BoE and PRA confirm Resolvability Assessment Framework
Following the consultation at the end of last year, the Bank of England and PRA have published the final version of their proposals for resolvability. The Resolvability Assessment Framework applies to certain UK banks...
EC sets out position statement on equivalence decisions
The EC has published a communication about equivalence decisions (the timing of which is no doubt entirely unrelated to the ascension of pro-Brexit Boris Johnson to the Prime Ministership of the UK). The communication...
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 publishes SMCR final rules
FCA has at last published its final rules on extending the SMCR to solo-regulated firms, including CMCs. It has, in the main, implemented the changes it consulted on in its consultation on “optimising” the...
Regulators tweak exit arrangement rules
FCA has announced an extension to the directions made under its temporary transitional power which it introduced in February. The direction will now give firms until 31 December 2020 to make the necessary adjustments...
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...
Call for views on Access to Cash research
The Payment Systems Regulator has published the results of its commissioned research into how people and businesses are using cash in today’s landscape. It found that despite the transition to and increase in...
EBA publishes updated report on CET1 instruments
As part of its mandate under CRR to monitor and report on capital instruments, the EBA has published an update to its CET1 Report along with an updated list of instruments. The EBA notes the inclusion of 16 new forms...
Updated FCA and PRA MoU published
The FCA and the PRA have updated the MoU setting out the relationship between the two regulators and the way in which they respectively operate, particularly in common areas. The MoU was first published at the time of...
EBA FinTech report published
The EBA has analysed the regulatory landscape for FinTech firms, both in terms of activities around the regulatory perimeter and within authorisation. The report sets out the findings of this analysis, including...
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...
Lending Standards Board confirms threshold increase for small businesses
The Lending Standards Board (LSB) has announced that from the Standards of Lending Practice for business customers are to apply to businesses with a turnover of up to £25 million, from the previous £6.5 million...
FCA discusses AI in financial services
In a recent speech, Christopher Woolard of the FCA considered three lenses through which the FCA views the issues relating to AI: what are new, and what are existing issues; how to ensure that AI creates value for...
FCA invites feedback on Gabriel replacement
The FCA has announced that it is planning a replacement for Gabriel, its data collection system. It has therefore asked current Gabriel users to complete a feedback survey to provide views that can be considered in the...
Irish regulator fines bank for CRD IV failings
The Irish Central Bank has imposed a €5.9 million fine on Wells Fargo Bank International Unlimited Company for breaches of regulatory reporting and governance requirements under CRD IV, as implemented in Ireland. The...
CMA censures Barclays for SME undertaking breach
CMA has censured Barclays, and directed it to pay £1,910.55 to affected SMEs for making them pay for accounts they did not need. The bank had bundled products together, which had the effect of preventing SME customers ...
UK financial regulators publish climate change Joint Declaration
The FCA, PRA, TPR and FRC have jointly issued a declaration reiterating their commitment to work on the enhancement of climate-related disclosures. The Joint Declaration also welcomes the UK’s Green Finance...
UK government launch Green Finance Strategy
HM Treasury and BEIS have launched a Green Finance Strategy to meet the government’s target of reducing emissions to net zero by 2050, to boost sustainable investment, and to help make the UK a ‘green...
BIS to set up Innovation Hub
The Board of the Bank for International Settlements (BIS) has announced the establishment of a BIS Innovation Hub to foster international collaboration on innovative financial technology within the central banking...
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...
ECB will fight post-Brexit market fragmentation
Benoît Cœuré, a member of the executive board of the ECB, recently spoke about priorities and challenges facing European capital markets. He asserted that finance market fragmentation has become an increasingly...
BoE Governor outlines plans for a ‘new economy’
In his recent speech at Mansion House, Mr Carney addressed what he saw as an emerging ‘new economy’, that would be driven by a ‘new finance’. He outlined measures taken by the Bank of England to...
Chancellor outlines financial services plans at Mansion House speech
The Rt Hon Philip Hammond MP spoke at Mansion House on 20 June, and outlined government’s plan to safeguard and expand the financial services industry, despite the uncertainties of Brexit and its likely impact on...
FCA to take no further action on RBS GRG
FCA has published its final report on its investigation into the RBR GRG group’s treatment of SMEs. Its last report was nearly a year ago, and at that time FCA explained its plan to undertake a comprehensive...
PRA feeds back on fees and levies
PRA has published its policy statement on proposed rates for 2019/2020. It will be implementing the proposals unchanged, and its updated rules and supervisory statement will take effect on 1 July.
PRA writes on risks of fast growing firms
PRA has written a Dear CEO letter relating to what it calls “fast growing firms”. These comprise 20 non-systemic deposit taking firms which have different business models and activities, most of which show...
CRR II and CRD V published in OJEU
CRR II and CRD V appeared in the OJEU on 7 June, together with BRRD II and the SRM II Regulation. The measures, adopted in May, are all part of the banking reform package proposed by the European Commission in late...
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...
IOSCO publishes recommendations for sustainable finance in emerging markets
The Growth and Emerging Market Committee of IOSCO’s report is directed at securities regulators and makes 10 recommendations for emerging market jurisdictions to consider when issuing regulations or guidance for...
Treasury Committee announces inquiry into decarbonisation of the UK Economy and Green Finance
The Treasury Committee has announced an inquiry that will look at the respective roles of HMT, regulators and financial service firms in supporting the government’s climate change commitment. The terms of...
FCA and PRA Joint Statement on LIBOR preparations
The FCA and PRA have published a joint statement on firms’ preparation for the transition from LIBOR to overnight risk-free rates (RFRs). The joint statement sets out key themes, good practice and next steps for...
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...
FCA and Dutch Authority agree on closer partnership
The FCA and the Dutch Authority for the Financial Markets have agreed to work more closely together in order to protect and enhance the integrity of their financial systems. The regulators will share information to...
FCA Publish Final Rules on Loan-based and Investment-based Crowdfunding Platforms
On 4th June 2019, the FCA published its feedback to CP18/20 and its final rules on loan-based and investment-based crowdfunding platforms in Policy Statement PS19/14. The changes largely match the proposals within the...
FSB continues work to address decline in correspondent banking
The FSB has published an update on its ongoing work to address the decline in correspondent banking that has emerged in recent years. The latest report notes that the number of active correspondent banks reduced by 3.4%...
EBA reports on 2018 work
The EBA has published its Annual Report for 2018. The Report records the key areas of focus for the EBA in 2018, in particular the development and maintenance of the single rulebook, and the work on payments and the...
EC clarifies scope of PRIIPs regulation to bonds
Following a request for guidance in July 2018 on the treatment of bonds under the PRIIPs regulation, the EC has reiterated that the assessment of whether a particular bond is a PRIIP or not must be performed on a case...
FCA feedback on conduct questions for wholesale banks
The FCA has published its feedback to the ‘5 Conduct Questions‘ that it asks wholesale banks on an annual basis. The purpose of these questions is to help firms improve their conduct risk management and...
EU Council adopts updated rules for financial derivative products and clearing
The EU Council has adopted a new regulation, amending the European Market Infrastructure Regulation (648/2012), that will address the transparency issues, insufficient access to clearing and disproportionate complicated...
EU Council adopts legislative framework to reduce risks in banking system
The EU Council has adopted reforms to CRD IV and the BRRD, as approved by the European Parliament in April. The package includes: a leverage ratio requirement for all institutions and a leverage ratio buffer for all...
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...