Monthly Archives: September 2016

PRA and FCA feed back on accountability

PRA and FCA have published several papers on the SMR, SIMR and accountability standards. FCA’s supervisory review of the SMR highlights its views that firms have, in general, engaged well. It gives detailed feedback, separately, in respect of UK banks and building societies, branches from both inside and outside the EEA, and credit unions. It […]

FCA consults on major MiFID 2 changes

FCA has published its third, and longest, consultation paper on implementing MiFID 2. The paper includes analysis of, and proposed Handbook changes for , the key conduct of business and related requirements within  the MiFID 2 package. Among the changes are those to COBS in relation to inducements, charging, client categorisation and advising. FCA needs […]

MLD4 high risk jurisdiction legislation in OJEU

The Commission Delegated Regulation on identifying high risk jurisdictions for the purposes of MLD4 has been published in the OJEU. The Regulation lists high risk third countries, in line with FATF designations. So North Korea has repeatedly failed to address identified deficiencies, Iran is seeking technical assistance for its high-level political commitment to address its […]

Treasury consults on financial advice amendment

Treasury is consulting on amending the definition of “giving investment advice” under the Regulated Activities Order to bring it into line with MiFID.  The current definition is broader than MiFID, and the Financial Advice Market Review found it was confusing to firms, many of whom were not giving as much “guidance” to customers as they […]

PSR receives super-complaint on push payments

PSR has received a super-complaint from Which?. The complaint wants more action by regulators and possibly legislation to reduce the risks that customers are defrauded when they make “push” payments.

FCA updates on financial crime expectations

FCA has published speeches by Nausicaa Delfas on cyber-security and Megan Butler on FCA’s approach to combatting financial crime. FCA remains committed to a proportionate approach to AML supervision, and noted it subjects only 14 banks and investment banks to its Systematic AML Programme – but these firms account for over 95% of UK retail […]

CML updates on lender/intermediary responsibilities

CML and other mortgage industry associations have published updated guidance for mortgage lenders and intermediaries, clarifying their accountabilities and responsibilities in relation to mortgage sales and servicing. The guidance was substantially changed in 2014 following the MMR and has now been updated further to reflect relatively few changes under the MCD.

Market turning event in the general insurance sector: PRA consultation

The PRA issued a consultation on 21 September 2016 on a draft supervisory statement regarding its expectations of general insurance firms in circumstances where there is a general loss event which might affect firms’ solvency and future business plans.  The draft supervisory statement covers the PRA’s expectations of firms in planning for and dealing with […]

Big Data in retail general insurance: FCA feedback statement

In November 2015, the FCA published a call for input on ‘Big Data’, ie the use of new or expanded data sets, new technologies to generate, collect and store data, and sophisticated analytical techniques.  The call for input focused on its use in retail general insurance, and in particular three main topics: whether the use […]

FCA publishes passporting figures

In response to the Treasury’s Committee’s investigation into the potential effects of Brexit, FCA has revealed details of the number of single market passports used by UK firms to passport into other EEA Member States, and those used by EEA firms to passport into the UK. Over 5,000 UK firms passport out, and over 8,000 […]

PAD takes effect

Treasury has confirmed how the UK has met its obligations to implement the Payment Accounts Directive into UK law. It has done this mainly through the Payment Accounts Regulations 2016, which took effect on 18 September. It has designated 9 banks under the Regulations to be obliged to provide basic accounts, and appointed FCA and […]

Treasury consults on MLD4 implementation

Treasury is consulting on implementing MLD4. It plans to repeal the current MLRs and Fund Transfer Regulations in favour of one piece of secondary legislation. We have produced a more detailed briefing on the paper.  The consultation asks several questions, many on firms’ experience of complying with AML legislation and the costs of doing so. The […]

FCA plans to ban Barclays Wealth director

FCA has published its decision notice proposing a public censure and ban on Andrew Tinney, former COO of Barclays Wealth and Investment Management. FCA found Mr Tinney had taken steps to conceal the content and existence of a report commissioned on Barclays Wealth America’s Culture Audit following the SEC identifying regulatory deficiencies. FCA considered his […]

Treasury Committee to review Solvency 2

The Treasury Committee is taking the opportunity of Brexit to discuss how the perceived shortcomings of Solvency 2 might be addressed.

Law Commission proposes log book loan reform

The Law Commission has published a report recommending changes to the “archaic” Bills of Sale legislation, to make log-book loans fairer for borrowers and give better protection to buyers of second-hand vehicles that are subject to loans. The reforms will give borrowers more time to pay, allow them to end the agreement by returning the […]

Read our articles on MiFID 2

We have recently written several articles on MiFID 2: MiFID 2: FCA gathers steam Post Brexit: What to do about MiFID 2? Conduct of Business under MiFID 2 – getting the gap analysis right FCA consults on major MiFID 2 changes ESMA’s MiFID 2 product governance guidelines PRA consults further on MiFID 2 FCA publishes […]


ECON has unanimously rejected the Commission’s draft KID for PRIIPS. It said much of the proposed content contained flaws, and could lead investors to think an investment would more profitable than was likely. There is a now a significant risk that the PRIIPS Regulation will have to take effect (at the end of the year) […]

SFO updates on DPAs

David Green has updated on SFO’s work, including speaking about the 2 DPAs now concluded. He said more are in the pipeline. He noted the speed with which the Standard Bank DPA was concluded as opposed to the Sweett Group prosecution. He noted that in the Standard Bank case there was an emphasis on the nature […]

Treasury publishes views on MLD4 extension

Treasury has submitted a paper on the proposals to update MLD4. Among other things, the Commission had proposed bringing virtual currencies within MLD4, reducing the threshold for CDD on non-reloadable prepaid instruments and removing the online exemption, harmonising approaches to non-compliant third countries, reducing the Beneficial Ownership criteria to 10% for passive non-financial entities and […]