Monthly Archives: February 2017

Article on Treasury MiFID 2 feedback

Following FIN’s report that Treasury had published its feedback and draft legislation for MiFID 2 implementation, we have now written an article on the feedback.

Regulators publish LTI guidance

PRA and FCA have published a policy statement and finalised guidance respectively on loan to income (LTI) ratios in mortgage lending with immediate effect. In June 2014, the Financial Policy Committee issued a recommendation to PRA and FCA advising that they should “ensure that mortgage lenders do not extend more than 15% of their total […]

Treasury consults on IDD implementation

Treasury is consulting on UK transposition of the IDD, which must take place by 23 February 2018. Treasury notes that many of the key changes the IDD brings will not have a significant effect on UK firms since, for example, the UK already applies the current IMD to insurers as well as intermediaries (when the […]

Court dismisses judicial review application of FOS decision

The court has dismissed an application for judicial review by Full Circle Asset Management Ltd (FCAM), a firm of financial advisors, of a decision by FOS. FOS had upheld a complaint made by an FCAM’s client, Mrs King, who argued that FCAM had provided her with a portfolio of investments unsuitable for her. Mrs King […]

Government announces Fintech week

The Government has announced the date of the 2017 Fintech week. It will take place in the week of April 10, and will include: Innovate Finance’s Global Summit the Government’s first International Fintech Conference; and FCA’s International Innovate Seminar. Treasury plans to use the week as a way of connecting UK Fintech companies with investors […]

FATF updates after plenary session

FATF has held its plenary meeting. Key issues discussed included: work on improving transparency and beneficial ownership: FATF and the Egmont Group are looking at mechanisms used to hide beneficial ownership with a view to assessing how to overcome the challenges of determining it; impact of work on de-risking; updating of list of jurisdictions with […]

Lord Chancellor lowers discount rate for personal injury claims

The Lord Chancellor has announced changes to personal injury compensation payments. With effect from 20 March 2017, the discount rate for personal injury claims will change from 2.5% to minus 0.75%. The discount rate is a calculation the court applies when finalising the compensation amount. The Ministry of Justice’s announcement comments that the rate change […]

Greater punishment for sanctions offences to take effect

Part 8 of the Policing and Crime Act 2017, which received Royal Assent at the end of January, and which is expected to come into force in April, gives powers under financial sanctions legislation  to punish offences (including offences under sanctions imposed by virtue of an EU Regulation, sanctions imposed to comply with UN resolutions and terrorism and […]

EBA publishes PSD2 authentication RTS

On 23 February, EBA published its final draft RTS on strong customer authentication and common and secure communication under PSD2. EBA heralded the publication as having had to address “difficult trade-offs between the various, at times competing, objectives of the PSD2”. It received a huge number of responses to its consultation, which identified around 300 […]

FCA to consult on SMR extension

FCA is to consult on the extension of the SMR to all authorised firms during the second quarter of 2017.

FCA and Ontario regulator sign up to innovation cooperation

FCA and the Ontario Securities Commission have signed a co-operation agreement to help Fintech businesses in each other’s jurisdictions get help from the local regulator when seeking to enter their market.  The OSC’s “LaunchPad” started last year and complements FCA’s Innovation Hub.

Secondary insurance broker sets up redress scheme

A direct mail order and online business has agreed with FCA that it will set up a redress scheme to provide around £12.5m redress to 330,000 customers to whom it sold insurance which offered them little or no value. Express Gifts Ltd was authorised to sell general insurance, and sold cover against accidental damage and […]

EU Fintech report to be debated in May

The EU legislative observatory indicates the EP’s report on Fintech is to be debated in committee session in mid-April and in plenary in mid-May. The draft opinion focuses on the benefits of Fintech for SMEs and calls on the Commission to remove barriers that currently prevent the advancement of digital services. Proposed amendments call for […]

CML supports borrower guardian bill

CML has given its support to the Guardianship (Missing Persons) Bill. It says the Bill would help lenders make pragmatic arrangements with guardians of missing borrowers to act in the best interests of those borrowers until they are found. It has some suggestions for improvements to the Bill, for example to clarify that lender liability would […]

EBA speaks on PSD2

At the same payments conference at which BoE spoke, Andrea Enria, Chair of EBA, spoke of EBA’s work on PSD2, specifically the technical standards it needs to produce. He noted there are 11 technical standards and guidelines to be produced, and that EBA has already consulted on over half of these. The most controversial is […]

ESAs warn on AML risks

The European Supervisory Authorities have warned the European Commission about the risks of money laundering and terrorist finance that affect the EU financial sector. The ESAs think many firms do not properly understand and manage their ML/TF risk, and also says firms sometimes find it hard to get information and intelligence that might speed up […]

BoE updates on payments infrastructure

Members of our team attended a seminar on the retail payments infrastructure. Among the speakers, David Bailey outlined BoE’s current priorities. He spoke of the role of the Payments Strategy Forum and BoE’s work on real time gross settlement. He focussed on the proposal to consolidate Bacs and Faster Payments, and the Cheque & Credit […]

ICO fines credit broker for unsolicited texts

The ICO has fined Digitonomy Ltd £120,000 for sending millions of marketing texts without proper consent. The company is an FCA-authorised credit broker, which generates leads for its business through affiliates sending marketing texts directing readers to websites offering loans. Between April 2015 and February 2016, the company instigated the sending of nearly 6 million […]


A new body is to launch later in 2017, designed to be the authoritative voice for the finance sector in the UK. The name and brand of the body is to be announced in summer 2017. Bob Wigley will oversee the appointment of the chief executive and the integration of the existing trade associations later […]

The Rolls Royce DPA

We have written an article about the Rolls Royce DPA in relation to bribery and corruption issues spanning many years and many jurisdictions.

MiFID 2 application guide

We’ve written an article on FCA’s recent MiFID 2 application and notification guide.

FATF sets plenary agenda

FATF will be meeting for a week in Paris from 18 – 24 February. Among the items on its agenda are: further strengthening of measures to counter terrorist finance transparency and beneficial ownership the mutual evaluation of Sweden progress of countries with AML deficiencies the continuing negative impact on AML efforts of derisking by clearing […]

FCA invites views on website

If you, like us, have views on FCA’s recently revamped website, you have a chance to let FCA know. It has invited views, in an online survey.

SFO announces new bribery investigation

SFO has announced an investigation into ABB Ltd’s UK subsidiaries and their officers and employees, for suspected bribery and corruption. The investigation forms part of the Unaoil investigation which SFO began last summer.

PRA fines BTMU firms for failure to be open with it

PRA has fined the Bank of Tokyo-Mitsubishi UFJ Limited £17.95m and MUFJ Securities EMEA plc £8.925m. The fine relates to a failure of the firms to be open and honest with PRA in respect of a US enforcement action, in breach of Fundamental Rules 6 and 7 in the case of BTMU and Fundamental Rule […]

Court should examine all terms for fairness

A recent case heard in the ECJ states that courts have a duty under the Unfair Terms in Consumer Contracts Directive to assess all terms in a contract for fairness, even if one specific term has already been considered in court. In a case referred by a Spanish Court, the ECJ held that, although a court […]

Bills of sale Acts to be reformed

The Government has confirmed it will be reforming the bills of sale Acts. The Law Commission had recommended that using goods as security for a loan while still continuing to have use of them should continue to be possible, but said the laws were outdated and in need of reform. The Economic Secretary to the […]

FCA looks at illiquid asset risks

FCA has published a discussion paper looking at the issues that arise when open-ended funds invest in illiquid assets, such as real estate, infrastructure and unlisted securities. It seeks views generally, but also raises specific questions, such as how best to strike the balance between the potential strong returns this type of investment can bring […]

MiFID 2 record keeping requirements

We’ve prepared a summary of record keeping requirements and the obligations of firms around recording of calls under MiFID 2.  It’s one of many articles we’ve written (and will keep on writing) on MiFID 2 and the changes UK firms will need to consider.

Our FinTech predictions for 2017

Read the predictions of Bond Dickinson partners Claire Coleman and Simon Richardson on the year ahead for FinTechs.

FOS focuses on complainant age

The latest edition of Ombudsman News looks at the types of complaints FOS addresses from people under 25. PPI is not a concern for them, with the majority of “millennial and post millennial” complaints relating to packaged and current bank accounts (babyboomers make the same proportion of complaints on packaged bank accounts, with Generation X […]

EIOPA proposes draft IPID

EIOPA has submitted draft ITS under the IDD for the Insurance Product Information Document (IPID). Much like its various predecessors and counterparts in other products, the IPID is designed to provide concise, simple and comparable information about non-life insurance products so consumers can take an informed decision on their purchases. The IDD already mandates the […]

CMA publishes final retail banking order

The final order implementing the retail banking reforms has been published. It sets out the timetable for introducing the various remedies the CMA recommended, including: open banking: the largest UK banks must develop and adopt an open API standard between now and Q1 2018; facilitating switching: undertakings on governance and awareness of the CASS service […]

Treasury consults on PSD 2 implementation

Treasury is consulting on draft legislation to implement PSD 2 into UK law. The Government wants to finalise the legislation as early in 2017 as possible to give industry as much time as possible to make changes. The Government will, as usual, continue to work to implementation of all relevant EU measures and in principle, […]

Government publishes Brexit White Paper

The Government has published its White Paper on building a new relationship with the EU after Brexit. The paper looks at the basis on which the Government wants to address the 12 principles Theresa May set out on 17 January. However, the Government says it has respected Parliament’s wish that it does not publish detail […]

LMA responds to Treasury Committee’s call for evidence on EU exit and transitional arrangements

The Loan Market Association (LMA) has responded to the UK Treasury Committee’s call for evidence on EU exit and transitional arrangements, in preparation for the start of official negotiations upon the triggering of Article 50. The LMA response sets out the need for transitional arrangements for the loan market following the UK’s exit from the […]

FCA looks at treatment of acquired clients

FCA has carried out a supervision review of how investment advisory firms treat clients they acquire from other firms. The sample in its study was small, and FCA recognises it may not be representative of the wider market, but noted that firms did not seem to focus enough on the impact of the acquisition on […]

TI publishes CPI 2016

Transparency International has published the Corruption Perceptions Index for 2016.  The updated index shows little significant change at the top. Denmark remains the “cleanest” jurisdiction, now tying with New Zealand. The rest of the top 10 comprise Finland, Sweden, Switzerland, Norway, Singapore, Netherlands, Canada, and Germany, Luxembourg and the UK tying in 10th place. Only […]

FCA updates on skilled persons reviews

FCA has published the figures showing the number of skilled persons reviews it initiated in Q3 2016. Of the 15 reviews, 5 concerned asset management and 5 concerned insurers/

FCA reports on Enforcement Review

FCA has published a policy statement to report on the main issues arising from the Enforcement Review and the Green Report. It has also published the final amendments to its Glossary, DEPP and EG. Changes to the rules include new defined terms, changes to the rules on the operation of the RDC, the procedure for […]

FCA consults on Insurance Linked Securities

FCA is consulting on the changes it needs to make to its rules to incorporate the new regulated activity of insurance risk transformation. The consultation complements FCA and PRA’s consultations on authorisation and supervision of ISPVs, which close in late February. FCA notes the Treasury’s proposal that ILS sales should be restricted to Qualified Investors […]

WMA holds financial crime conference

The WMA has held its annual financial crime conference.  Much of the focus was on addressing the risks of cybercrime. JMLSG confirmed it is working on updating its guidance notes for MLD4 compliance.

FCA publishes Regulation Round-up

FCA’s latest “Regulation Round up” focuses on: some big issues FCA plans to address in 2017, such as the progress of the FAMR, the extension of the SMR and the closure of lending reviews; the interim report on the Asset Management Market Study, reminding that the consultation period for responding on the remedies FCA proposed […]

FCA issues largest AML fine

FCA has fined Deutsche Bank £163 million, the largest fine it has imposed for AML failings. It found the bank failed to maintain an adequate AML framework from the beginning of 2012 to the end of 2015, the result of which was that unidentified customers used the bank to transfer around $10 million of finds […]