Monthly Archives: August 2017

basel committee releases fintech consultation

The Basel Committee on Banking Supervision today released a consultative document on the implications of fintech for the financial sector. The document assesses how technology-driven innovation in financial services, or “fintech”, may affect the banking industry and the activities of supervisors in the near to medium term. Various future potential scenarios are considered, with their […]

FMLC writes to MoJ on Withdrawal Bill

FMLC was invited to comment on the EU (Withdrawal) Bill, and has now provided its views to the Ministry of Justice. It is concerned that the wording of the Bill will create confusion. The Bill essentially says that all EU measures that are effective in the UK immediately before exit day will be effect post-exit. […]

Criminal Finances Act – are you ready for 30 September?

We have updated our article on the Criminal Finances Act, to reflect the decision to bring into force the offence of failing to prevent facilitation of tax evasion on 30 September. Have you considered how this affects your internal policies and procedures?

FCA launches PPI campaign with help from ‘Arnold Schwarzenegger’

The FCA has today launched its PPI campaign with a television advert in order to raise awareness of the two year deadline to make a complaint about payment protection insurance. The deadline, which has been introduced by the FCA in order to prompt people to check whether they had PPI and whether they want to make a complaint, ends […]

Commission clarifies Systematic Internaliser rules

The Commission is urgently making an amendment to clarify the scope of the MiFID 2 systematic internaliser category.  It has noted certain technological developments which risk undermining what should be a clear separation between bilateral own account trading when executing client orders and multilateral trading. The Commission stresses that a systematic internaliser is not allowed to engage, […]

When is an AR an agent?

A recent case looked at the extent to which there is an agency relationship between an AR and its principal. In the case, an AR entered into a client agreement  with the claimant under which it arranged an investment in a company. The client claimed the the AR gave incorrect and misleading information and breached COBS rules and […]

Commission consults on post-trade services and the CMU

In 2001, the European Commission identified certain barriers relating to post-trade services, and although major changes have taken place in the capital markets such as  EMIR, CSDR and SFTR), no review had been undertaken. The Commission has now published a consultation paper on post-trade services in the CMU in order to understand stakeholders’ views on […]

Treasury responds on pension scams

Treasury has confirmed its plans to ban cold calling, emails and texts in respect of private pensions as part of its measures to address pension scams.  It will also tighten rules to ensure that only active companies which produce up-to-date accounts can register pension schemes and introduce measures to help prevent money being transferred from […]

MoJ publishes Plevin guidance for CMCs

The Ministry of Justice has published guidance for claims management companies when they handle cases relating to Plevin. The guidance mainly explains what FCA’s expectations are and stresses that CMCs must not mislead clients about likely levels of redress. It also cautions against referring complaints to FOS without properly engaging with the relevant financial business […]

Financial Crime Compliance Course

Bond Dickinson will be hosting and speaking at the 2017 Financial Crime Compliance Professionals Certification Course on 4 October. Attendance is limited to only 30 delegates, so book soon!

ESAs publish further Q&As on the Key Information Document for PRIIPs

Further guidance on the Key Information Document (KID) under PRIIPs was published by ESAs today in the form of questions and answers (Q&A). The Q&A includes additional questions and answers to those published on 4 July 2017 as well as diagrams to explain the risk and rewards calculations required to prepare the KID. The updated […]

FCA Regulation round – up for August

This month’s edition of Regulation round-up discusses: the consultation to extend SM&CR to all financial services firms; the Threshold Conditions Team taking enforcement action and cancelling the authorisations of 207 firms; FCA’s agenda and priorities for consumer credit; contingency planning for firms that do not have their MIFID II permissions in place by 3 January […]

FCA sets out its supervisory approach to PPI

The FCA has today announced that it will soon be launching a campaign to inform people of the 29 August 2019 deadline for making a complaint about PPI.  The campaign will contribute to the regulatory and supervisory work the FCA has already done around PPI and will continue to do. The campaign, which will be […]

Minor amendment to PRIIPS RTS published in the Official Journal

Background A corrigendum to Commission Delegated Regulation (EU) 2017/653 of 8 March 2017 supplementing Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs) by laying down regulatory technical standards (RTS) with regard to the presentation, content, review and revision of key information documents and the conditions for fulfilling […]

ECB: Brexit clock is ticking

Sabine Lautenschläger, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, talks about developments in the preparatory work of banks and supervision in light of the UK leaving the European Union, Supervision Newsletter (Summer 2017) In summary, Lautenschläger said that: all affected banks should prepare themselves with […]

Rise in complaints for PPI

This week FOS published its regular newsletter in which it discussed: a rise in consumer credit complaints; statistics on complaints received in the first quarter of 2017/2018; and an update on PPI and the FCA’s new rules and guidance FOS’ Annual Review The annual review published earlier in the summer by FOS identified that complaints about […]

European Commission publishes rules for insurance product information document under IDD

The European Commission has published a regulation laying down a standardised presentation format for the insurance product information document (IPID) to comply with IDD. The IDD must be transposed into national  law by 28 February 2018 and the IPID must be provided to customers with the necessary information about non-life insurance products in order to […]

HM Treasury reports on the progress of Insurance Fraud Taskforce’s recommendations

HM Treasury has published a report on the progress made during 2016 on the original 26 recommendations put forwards by the Insurance Fraud Taskforce. The Taskforce was set up to investigate the causes of fraudulent behaviour and recommend solutions to reduce the level of insurance fraud in order to ultimately lower costs and protect the […]

Government publishes DP Bill statement of intent

We have written an article on the Government’s statement of intent for the Data Protection Bill.

BoE NEDs review conflicts policies

The BoE’s non-executive directors have published a review of its approach to identifying and managing conflicts of interest within the BoE set up. There will be an update to the Bank’s Code of Conduct to update and clarify requirements. Among changes will be the appointment of a designated Conflicts Officer, together with other organisational and technological […]

Treasury Committee and PRA exchange Brexit letters

Nicky Morgan, new Chair of the Treasury Committee, and Sam Woods of PRA have exchanged letters on Brexit planning. The PRA response explained PRA’s work in assessing the scenarios that might have the biggest impact on its objectives – such as a hard Brexit with no ongoing cross-border market access. PRA has received over 400 […]

ASA unhappy at Amex ad

ASA has found a TV advert for American Express breached the BCAP rules on misleading advertising, qualification and exaggeration.  On the ad, a voiceover claimed that “there is a card that could give you 5% cashback on all purchases”. In fact, this amount was available only for the first 3 months, was subject to a […]

Sanctions guidance updated

Treasury and OFSI have updated their guidance on financial sanctions to bring the general guidance and guidance on the relatively new monetary penalties for breach together.

Tribunal upholds IFA ban

The Upper Tribunal has upheld FCA’s decision to ban a former CEO of an adviser network. FCA has banned Charles Palmer and fined him over £86,000 for failing to act with due skill, care and diligence.  The network had nearly 400 Appointed Representatives and over 500 registered individuals who, between them, provided advice to around […]

FCA updates guidance to firms on applications and notifications under MiFID II

The FCA has updated its user guide to provide the following notifications: Ancillary activity exemptions Under MiFID II, firms who trade in commodity derivatives may be able to make use of an exemption from authorisation.  Firm will need to notify the FCA if they intend to rely on the exemption by completing a notification form.  […]

PRA consults on fees and levies for insurers and designated investment firms

PRA has published a consultation paper on model transaction fees, fees and FSCS levies for insurers and fees for designated investment firms. The consultation paper is relevant to  insurers and designated investment firms, as well as firms which have, or intend to apply in the future for, Solvency 2 or CRR models. The consultation paper sets […]

bank for international settlements releases working paper on fintech opportunities

The BIS has today released Working Paper No 655 (the FinTech Opportunity) by Thomas Philippon. The paper assesses the potential impact of FinTech on the finance industry. It documents first that financial services remain surprisingly expensive, which explains the emergence of new entrants. It then argues that the current regulatory approach is subject to significant political […]

eba publishes fintech discussion paper

The European Banking Authority has published a Discussion Paper on its approach to financial technology (FinTech). The EBA sets out in the Discussion Paper the results of the first EU-wide FinTech mapping exercise and its proposals for future work on FinTech. To gain a better understanding of current FinTech activity in the EU, in spring 2017, […]

faster payments has successfully tested payments in the tens of millions of pounds

In an announcement from Faster Payments, it was announced a ‘Live Proving’ exercise was carried out to test the ability for all existing Participants to receive a payment of a significantly higher value than the current £250,000 limit. First multi-million pound Faster Payments The exercise was successfully completed on Tuesday 11th July 2017, with all 16 Participants […]

Treasury updates sanctions guidance

HM Treasury and OFSI have updated their guidance on what to do in the case of a suspected breach of financial sanctions. It has published its suspected breach form, and says firms should report suspected breaches as soon as they become aware of them, including the names of all relevant parties, amounts, account names and […]

Up next from FCA

FCA’s latest policy development update promises several papers before the end of September: consultation on market infrastructure provider fee rates consultation on insurers’ tariff data finalised guidance on FAMR implementation part 1 and policy statement on the first IDD consultation and publication of the third consultation The long-planned consultation on new rules for firms running […]

PSR publishes consultation on Direct Debit Facilities Management: Switching providers

The Payment Systems Regulator has published its Consultation on provisional conclusions and proposals to change the Direct Debit rules relating to the switching of Facilities Management providers. Organisations wishing to collect money from their customers via Direct Debit (such as charities and local councils) must be approved, or ‘sponsored’, by a bank or building society […]

FCA consults on CASS change for unbreakable deposits

FCA is consulting on a change to CASS to help firms that are having difficulty placing deposits with banks because of a combination of a current CASS rule that prevents firms placing client money in bank accounts with unbreakable terms of longer than 30 days, while the banks say the cost of liquidity requirements associated […]

Government publishes post-Brexit sanctions plans

Treasury, the FCO and the Department for International Trade  have announced the publication of the Sanctions Bill, which will ensure the UK has the necessary powers to implement sanctions post-Brexit and also give it greater flexibility on introducing new measures. The Sanctions Bill will legislation to repatriate powers on non-UN snactions from the EU to […]

FCA looks at new technologies and AML

FCA has published the results of a survey it commissioned on emerging technologies, and how they can help firms in their AML prevention work. Firms make significant use of technology, particularly in onboarding, analytics on client screening, and saw great potential in technology helping in transaction monitoring. FCA is keen to help firms use technology […]

EBA releases CP on fraud reporting requirements under psd2

The EBA’s Consultation Paper on the Guidelines on Fraud Reporting under PSD2 (EBA/CP/2017/13)  has been developed  in close cooperation with the European Central Bank (ECB) to ensure that the high-level fraud reporting requirements under Article 96(6) of the PSD2 are implemented consistently among Member States and that the aggregated data provided by competent authorities  to the […]

FCA consults on FAMR: implementation Part II and insistent clients

The FCA has today published its consultation paper (CP17/28) on implementing two of the recommendations made in the final report of the Financial Advice Market Review (FAMR), which was published in March 2016. FAMR was launched in 2015 by the FCA and HM Treasury (HMT) as a result of concerns that the market for financial advice in the […]

8 EU states offer to host the EBA post-brexit

The EC has today announced that the following cities have proposed to host the EBA: Brussels (Belgium) Dublin (Ireland) Frankfurt (Germany) Paris (France) Prague (Czech Republic) Luxembourg-City (Luxembourg) Vienna (Austria) Warsaw (Poland) The applications will be assessed on the basis of six criteria agreed by the 27 member states: guarantees that the agency will be operational when […]

FCA feeds back on high cost credit

FCA’s response to its call for input into its review of high cost credit has concluded it will keep the HCSTC cap at its current level, but review it again within the next 3 years.  It has found an improvement in consumer outcomes since it imposed the cap, and a practice developing of offering longer […]

FCA updates on motor finance work

FCA has published further details of what it is doing to identify potential consumer harm in the motor finance market. It notes most new car finance is in the form of a Personal Contract Purchase, which is a form of hire purchase under which the value of the car at the end of the contract […]

MiFID 2 Article 3 firms

We wrote an article for Financial Adviser on the impact of MiFID 2 on article 3 firms.