Monthly Archives: December 2016


The new rules which will guide insolvency practice are to come into force on 6 April 2017. The Insolvency Rules 2016 have been introduced to consolidate the Insolvency Rules 1986 and their numerous amendments into a single instrument, to update them in terms of their language and style of drafting, and to reflect modern business practice and […]

Treasury Committee concerned on cybersecurity

: Andrew Tyrie has written to the National Cyber Security Centre, expressing concern that there is no single point of responsibility for cyber risk in the financial services sector. The Committee thinks there needs to be a better level of scrutiny and accountability for how relevant authorities currently address the risks, and what help they […]

CMA concerned about cashpoint merger

CMA has made a provisional finding that the acquisition by Diebold of Wincor may reduce competition in the supply of cashpoints in the UK. It invites comments on its provisional findings by 10 January 2017.

ESMA publishes MAR FAQs

ESMA has published an updated questions and answers document on MAR. New questions cover whether transactions should be aggregated for the purpose of the trigger for the notification obligation for PDMRs and their closely associated persons, how the price of gifts should be calculated for these purposes, and whether shares received as part of a […]

EU publishes MLD 5 negotiating mandate

The Presidency of the Council of the EU has published the negotiating mandate it hopes will progress MLD 5 negotiations. It wants the incoming Presidency to start talks with the European Parliament on key changes to MLD 4, including changes to address risks linked to pre-paid cards and virtual currencies, improving co-operation between investigating agencies, […]

FCA publishes fourth MiFID 2 consultation

FCA has published its fourth consultation on changes to its rules to implement MiFID 2. This consultation is in many ways a sweep-up to cover all changes not previously covered in FCA’s other consultations. To a large extent it covers rules that apply to specialist firms. The changes, although few are fundamental, nevertheless affect most […]

Parliament urges FS transition after Brexit

The EU Financial Affairs Sub-Committee has published its report on Brexit and financial services. The report says it is critical to agree a transitional period for financial services to avoid a “cliff edge” which could cause UK firms to restructure or relocate working on a “worst case” scenario. It notes that the equivalence provisions in […]

Presentation disclaimers do work after all

On 8 December, the Court of Appeal overturned the Commercial Court’s decision in relation to s.2(1) of the Misrepresentation Act 1967 (negligent misrepresentation), and standard disclaimers in written publications issued by a bank. In Taberna Europe CDO II plc v Selskabet AF 1.September 2008(formerly Roskilde Bank A/S) [2016] EWCA Civ 1262, Taberna Europe CDO II […]

FOS consults on plan and budget

FOS is consulting on its plan and budget for the year ahead. It expects record numbers of PPI complaints, with a steady level of complaints in the banking, insurance and investment sectors. It plans to keep the case fees the same as for the past 5 years – so there is a £550 fee per […]

FCA consults on FSCS changes

FCA is consulting on changes to FSCS rules and funding. It is considering introducing mandatory terms to make PII more effective for firms that FCA requires to hold it, and also exploring introducing new levy categories and updating consumer coverage limits in light of pensions freedoms, some aspects of fund management, debt management and structured […]

Article: FinTech firms navigate regulatory uncertainty

Current laws and regulations weren’t designed with FinTech or InsurTech in mind, so startups must – on top of their business proposition – implement appropriate compliance procedures and grapple with legal uncertainties. Brett Carr discusses the challenges of this in an article just published by Compliance Monitor.

FCA publishes arrears management review

FCA has published its thematic review report on early arrears management in unsecured lending. The report sets out how the FCA conducted the review, its findings and, where relevant, how firms are currently meeting the relevant rules and guidance. Key findings include the following: For customers showing signs of financial difficulty, the FCA found that […]

EP publishes Brexit briefing

The European Parliament has published a briefing on the impact of Brexit on the financial services industry. The briefing describes the prominent role of the UK in the single market for financial services and highlights which activities currently rely on passporting for their daily business with the other 27 Member States. The briefing considers the […]

FCA launches market study on competition in the mortgage sector

FCA has launched a market study on whether competition in the mortgage sector is working in the interests of borrowers. The purpose of the study is to help the FCA understand whether consumers have enough information to choose products and services, and if they are in a position to understand whether these represent good value […]

FOS looks at mental health and complaints

The latest issue of Ombudsman News focuses on complaints firms have received in respect of customers with mental health issues.

LSB calls for data on digital

LSB is calling for evidence as part of its Standards Development project to look at firms’ digital capabilities. It asks: What are the main challenges faced when developing products and services for digital channels? When developing a digital customer journey how are specific customer groups accounted for, such as: vulnerable customers? Are there any processes […]

FCA explains RMAR

FCA has published a summary of why it collects data for the RMAR and how it uses it. Its key purpose is to help it supervise firms in a way to minimise poor consumer outcomes in the retail investment market. The data allows it to assess firms’ compliance with threshold conditions, prudential and conduct requirements, […]

PRA updates skilled persons data

PRA has published an update on skilled persons reports it has commissioned. In the last reporting period, it commissioned 4 reports, all on insurers.

FCA announces HK cooperation

FCA has signed a MoU with the Hong Kong Monetary Authority to enable the authorities to collaborate on a number of initiatives such as referrals of innovative firms, joint innovation projects, information exchange and experience sharing. The announcement follows similar agreements with Australia, Singapore, South Korea and China. The aim is to encourage UK firms […]

Treasury prepares for PRA changes

Treasury has published a draft statutory instrument which prepares for the transfer of the PRA into the Bank of England under the Bank of England and Financial Services Act 2016, which is likely to happen in the first half of next year.

FCA consults on retail CFD changes

The FCA is proposing stricter rules governing retail CFD products after identifying a number of concerns. It is worried retail customers are opening and trading CFD products that they do not adequately understand. A representative study found that 82% of clients in a representative sample of CFDs lost money on these products. The review also […]

FCA consults on regulatory fees and levies

FCA is consulting on policy proposals for regulatory fees and levies in 2017/18. The main areas in which it proposes to increase its fees are to cover its costs of tackling illegal money laundering and of implementing the MiFID 2 package. It notes it will keep under review all its proposals in light of Brexit. […]

What’s coming up from FCA

FCA’s latest Policy Development Update indicates we can expect its fourth consultation paper on MiFID 2 implementation soon, maybe before the end of the year. It then promises feedback on consultations to date during the first half of 2017 – and will have to make its final rules by July to meet the transposition deadline. […]

LSB updates lending standards

LSB has developed a set of Standards of Lending Practice for business customers, which it plans to launch in early 2017 to replace part of the Lending Code. It will extend the Lending Code provisions to include not only micro-enterprises but all businesses with a turnover of up to £6.5m. LSB will introduce the new […]

Bond Dickinson wins Compliance Register Awards

At the Compliance Register Platinum Awards dinner on 1 December, we were delighted to win: Bond Dickinson: Most Effective Law Firm Emma Radmore: Best Compliance Trainer Emma Radmore: Long and Distinguished Service to Compliance and Regulation Andrew Barber: Runner Up: Best Regulatory Lawyer Thank you to our readers who nominated and voted for us.

Summary boxes take effect as FCA publishes sunlight remedy data set

FCA has published its third “sunlight remedy” data set, which shows how firms treat interest on the accounts of long-standing customers. FCA’s research indicates the median lowest interest rate is higher on open accounts and closed ones, and on accounts that cannot be managed in branch. FCA will now evaluate how well its remedy worked […]

PRA and FCA consult on insurance special purpose vehicles

The PRA and FCA have issued a consultation paper on the authorisation and supervision of insurance special purpose vehicles (ISPVs). An ISPV is used in the transfer of risk from a (re)insurer to the capital markets by issuing insurance linked securities (ILS). The consultation paper should be read alongside HM Treasury’s consultation on the new […]

FCA makes it crystal clear that 2016/2017 Remuneration must be directly linked to Effective Risk Management

The FCA will crack down hard on firms which incentivise behaviours that are not in the best interests of consumers, market integrity or fair competition and will look closely at Material Risk Takers, bonus pools and individual performance assessments. The FCA’s letter to all UK banks, building societies and investment firms (with relevant total assets […]

PRA and FCA consult on LTI ratios

PRA is consulting on changes to its rules and FCA is consulting on guidance to take account of the FPC recommendations on loan-to-income ratios in mortgage lending.  The FPC had asked the regulators to ensure mortgage lenders limit the number of new residential mortgages granted with an LTI of 4.5% or more to 15% of […]

Presidency publishes MLD5 compromise

The Presidency of the EU has published a further compromise text on MLD5. Its proposed changes include abolishing the minimum threshold for remote payment transactions using general prepaid cards, strengthening cooperation between financial intelligence units, and requiring Member States to apply proportionality when deciding whether to make beneficial ownership registers public.

EP votes on PRIIPs delay

The European Parliament has voted to delay application of the PRIIPs Regulation to 1 January 2018, but the EU process must work fast to ensure the official measures are in place before the original implementation date.