The Treasury consultation on the imposition of an economic crime levy concluded last October and Treasury has published a summary of the responses it received. The Government is now consulting until 15 October on the...
Author - Emma Radmore
Emma Radmore
Court finds FSCS entitled to reject claim
The High Court has ruled on an application for judicial review of a decision by FSCS to refuse to compensate investors after an investment firm failed. The investors had bought wind bonds, initially before the firm in...
ESMA speaks on retail investment in capital markets
Natasha Casenave of ESMA has spoken on the investor protection safeguards that are needed to deal with the increasing retail participation in capital markets. She said ESMA welcomes both the increased investment and...
OPBAS publishes progress report
OPBAS has published its latest report on its work to bring compliance with AML requirements in the professional services supervisory sector up to the levels in other sectors. Its report shows there are still...
Measuring value for money in DC pension schemes
The FCA and the Pensions Regulator (TPR) have published a joint discussion paper on developing a framework for measuring value for money in defined contribution (DC) pension schemes. The FCA and TPR are proposing a...
Regulators write to firms on trade finance expectations
PRA and FCA have sent a joint Dear CEO letter to firms who carry out trade finance activity. The regulators want to ensure firms understand what is expected of them. Both regulators consider there is often insufficient...
UK Finance looks at retail CBDC
UK Finance has published a report looking at the threats and opportunities of a central bank digital currency. The BoE says the around 95% of funds people hold to make payments are held as bank deposits rather than...
Court rules that ML offence can be committed by predicate offender
A Romanian court had sentenced an individual to imprisonment for money laundering. The proceeds of crime in question were the proceeds of tax evasion committed by the same individual. As part of an appeal (which was...
Commission updates PRIIPs KID standards
The European Commission has adopted new technical standards for the PRIIPs KID, which will apply from 1 July 2022 (so long as approved by the Council and Parliament), and will finally apply to all retail products. The...
IOSCO publishes AI usage guidance
IOSCO has published guidance for supervisors of intermediaries and asset management firms when they use AI and machine learning. It notes both the benefits and the risks of usage, and says that as use is growing...
Industry works on FS strategy plan
TheCityUK has produced a new international strategy aimed at returning the UK to its status as the world’s leading international financial centre within 5 years. If focuses on how to bolster competitiveness and...
OFSI calls for frozen asset reports
OFSI has called for any firm holding assets of designated persons to submit the annual frozen assets report by 15 October, reporting on the value of all assets as of close of business on 30 September. As usual, the...
PRA consults on insurance holding company definition
PRA is consulting on its approach to interpreting and applying the definition of “insurance holding company“. It wants to distinguish an insurance holding company from a mixed-activity insurance holding...
TI responds on corporate criminal liability
Transparency International has responded to the Law Commission consultations on reform of corporate criminal liability. The response notes: that reform is long overdue, given the difficulties in establishing corporate...
FCA calls for funeral plan providers and intermediaries to apply now
FCA has updated its website to tell funeral plan providers and intermediaries what they need to do to ensure they are appropriately authorised by 29 July 2022. It has provided a set of forms that applicants will need...
Andrew Bailey writes to Chancellor on prudential regulation
PRA has published Andrew Bailey’s response to the Chancellor on Treasury’s recommendations on the PRA’s remit. He notes PRA’s work to ensure the Brexit transition period ended without any...
FCA confirms pensions transfer redress guidance review
FCA has confirmed its plans to start a periodic review of its FG17/9 on how firms should calculate redress for unsuitable DB pension transfer advice. It will start the review by the end of 2021, in line with its...
Tribunal confirms FCA ban on IFA following sex offence
The Upper Tribunal has published its decision relating to Jon Frensham, an IFA convicted of attempted sexual grooming of a child. FCA had decided to withdraw Mr Frensham’s approval and make an order prohibiting...
FCA warns firms about Afghanistan financial crime risks
FCA has reminded firms that the recent developments in Afghanistan may have an impact on the way they need to assess financial crime risks. It has warned them to consider what impact events may have on patterns of...
FCA publishes supervisory notice against Dolfin Financial
FCA has published a supervisory notice sent to Dolfin Financial (UK) Limited in March. The requirements in the notice have now largely been cancelled as Dolfin entered special administration. FCA has also redacted parts...
Contactless limit to increase from 15 October
UK Finance has confirmed the £100 contactless limit will apply from 15 October. However, it warned that it is likely to take retailers some time to update their terminals to accept the new limit.
FCA publishes P2P strategy letter
FCA has published its portfolio supervision letter to loan-based P2P crowdfunding platforms, sent to relevant firms in May. In that letter, it identified 4 potential areas of harm for investors (lenders): the secondary...
FCA publishes requirements on SIPP operator
FCA has published the second supervisory notice it made in relation to DAC Pensions Limited, a small SIPP operator. The firm had accepted significant business from two EU-based introducers, operating in the UK under...
FCA publishes personal and commercial line insurance portfolio letter
FCA has published its supervisory strategy letter to personal and commercial lines insurers. The letter is dated 28 April, but only just published. The letter updated FCA’s previous communication of January 2020...
FCA tells insurance firms to be ready for fair value changes
FCA is worried that many firms are not currently compliant with its rules and guidance on product governance and value, and will not be ready to meet the new requirements which take effect on 1 October. It has carried...
FCA sending further resilence survey updates
FCA has started to email its fifth update to the Covid-19 resilience survey. Firms in Tranche 2 are receiving it between 23-25 August, and firms in the TPR and supervisory run off regime will receive it from 26 August...
EBA reports on controller condition peer review
EBA has published its peer review on how regulators assess those acquiring qualifying holdings in banks. Overall, the study found compliance with EBA’s guidelines, leading to significant convergence in practices. ...
Register now for FIN Live: 9 September
FIN subscribers will already have received an email enabling them to register for our webinar at 10:00 on 9 September, at which Lucy Hadrill, Emma Radmore and Peter Warcup will cover FCA’s business plan, possible...
FCA updates on SCA
FCA has updated its webpage on SCA, to confirm its decision to extend the deadline for full SCA compliance for e-commerce transactions to 14 March 2022. However, it also stresses its expectation that if firms can apply...
FCA publishes life insurance supervisory letter
FCA has published its supervisory strategy for life insurers. The letter updates its communication from December 2018 and looks at: how the 2018 strategy has progressed; FCA’s updated view of the key harm risks;...
CAT grants Mastercard collective proceedings order
The Competition Appeal Tribunal has granted the Merricks application for a collective proceedings order in relation to claims for millions of UK consumers against Mastercard following the European Commission’s...
FCA updates on GI pricing
FCA has made some minor changes to the rules on general insurance pricing which were published in May. Among other things, the changes: clarify how the rules apply to firms that offer discounts or incentives to...
FCA writes to investment-based crowdfunders on supervision
FCA has published its Dear CEO letter on its portfolio strategy for investment-based crowdfunders. It notes that if any firm that has received the letter is not currently active in the market it should apply to remove...
HMRC updates on MLR fines
HMRC has updated its list of businesses that have not complied with the MLRs. Among the actions: a fine of £1,000 on an accountancy service provider that failed to provide documents when requested; a fine of £6,300 on...
Commission asks for views on UCITS KID
The Commission is asking for views on its proposal for a Directive on UCITS. The proposals relate to the use of KIDs by UCITS managers. The current exemption from the use of a PRIIPs KID for UCITS expires at the end of...
LSB looks at next steps for CRM Code
LSB says the responses it received to its call for input on the CRM Code suggest the risk of APP scams is not evenly distributed among payment providers, and some respondents thought it did not cater for certain...
OFSI fines fintech for sanctions breach
OFSI has fined TransferGo Limited (an authorised payment institution) £50,000 for making funds available to a person designated under the Ukraine sanctions regime. The fine relates to 16 transactions where TransferGo...
Court sanctions Provident scheme
The Court has sanctioned the Provident Personal Credit Limited scheme, which includes a proposal to wind down the business. FCA has not supported the scheme for reasons including that consumers are being offered...
Court of Appeal supports FCA on unauthorised business action
The Court of Appeal has supported FCA in upholding findings that Alexandra Associates (UK) Limited, trading as Avacade Future Solutions, and Craig and Lee Lummis carried out unauthorised activities both in arranging and...
FCA writes to RemCo chairs
FCA has written to the Chairs of Remuneration Committees within firms to set out its approach to remuneration this year and to highlight the areas RemCo chairs should be considering. Broadly, the Chair must remain...
ESMA publishes calls for advice on PRIIPs and wider retail issues
ESMA has published: a call for advice it has received on certain aspects of retail investor protection in which the Commission asks ESMA to advise on: addressing and enhancing investor engagement with disclosures;...
EBA consults on AML compliance officers
EBA is consulting on new guidelines on the role, tasks and responsibilities of AML/CFT compliance officers within supervised entities. The guidelines also consider the wider governance set up, including at group level...
FCA gets illegal money lender charges removed
FCA has obtained an order from the High Court to remove over 600 charges, notices or restriction that had been registered by an illegal money lender at the Land Registry. FCA has started several legal proceedings...
LSB publishes Access to Banking Standard summary
LSB has published a summary report on the Access to Banking Standard. The report makes it clear that LSB has no role in approving or commenting on a bank’s decision to close a branch, but merely to see how the...
FCA consults on streamlining decision making
FCA is consulting on changes to its decision making process. It plans to move some decision-making from the RDC to the authorisations, supervision and enforcement divisions, to speed up the process and give...
FCA publishes individual ban notice
FCA has published a decision notice noting its decision to ban Markos Markou, director and CEO of a mortgage broker, and to fine him £25,000. FCA considers Mr Markou not fit and proper to perform his senior management...
FCA writes to firms on SME lending and BBLS fraud
FCA has published a Dear CEO letter on its expectations of firms in reporting BBLS fraudulent activity. It notes the excellent levels of cooperation within the industry throughout the pandemic and in relation to BBLS...
Individual imprisoned for fraudulent trading and FSMA breaches
Ian Hudson has been imprisoned for 4 years, for one count of fraudulent trading and two additional terms of 14 months each reflecting a breach of s19 FSMA. These will run concurrently following an earlier guilty plea...
FCA updates on IFPR
FCA has updated a number of pages on its website to reflect the forthcoming IFPR. Among other things, it has updated its pages on: authorisation applications for wholesale investment firms capital requirements...
PRA updates on international bank supervision
PRA has published a policy statement and updated information on its supervision of branches and subsidiaries of international banks and designated investment firms. Most respondents to its consultation welcomed the...
FCA updates on platforms portfolio strategy
FCA has published an update to its strategy for its platforms portfolio of firms. It first set out its major concerns in February 2020, and has written to firms to update them on its focus going forwards. Its key...
PRA updates on accountability
PRA has updated its web resources on strengthening accountability in banks and insurers. It has highlighted its paper on working together to drive change in diversity and inclusion and on its updates for remuneration...
FCA publishes second set of IFPR rules
FCA has published its second “near final” rules on elements of the new IFPR. These rules cover : own funds requirements firms acting as clearing members and indirect clearing firms basic liquid assets...
FOS commissions independent review
The FOS Board has commissioned an independent review of its service, aimed at ensuring it can continue to meet its customers’ needs. The first part of the review will look at the current operational effectiveness...
PSR writes to banks and UK Finance on Phase 2 of CoP
PSR has written an open letter to the 6 banking groups directed under its SD10 and to UK finance, on the public commitment to deliver the first part of Phase 2 of Confirmation of Payee. The banks had confirmed their...
FCA confirms new rules
FCA has confirmed various rule changes in its latest Handbook Notice: to the technical standards under EMIR, to give firms clarity and to align the UK in implementing various Basel Committee and IOSCO recommendations...
PRA updates MRT waiver
PRA has updated its list of modifications by consent to include an application to allow CRR firms to exclude from idenfication as MRTs employees who meet the pay-based criteria for the definition but are deemed not to...
ESMA updates funds FAQs
ESMA has updated its FAQs: on the AIFMD, in relation to risk measurement and performance fees; and the UCITS Directive, in respect of how the guidelines apply to funds with multiple portfolio managers and performance...
FCA publishes annual report and accounts
FCA has published its annual report and accounts for 2020/21, accompanied by the usual specific report. Interesting figures include: enforcement data: 134 final notices were issued of which only 15 were against...
FCA to survey preparedness for GI pricing changes and use of credit broking permissions
The latest edition of “regulation round up” notes that FCA is shortly to ask a sample of insurers, insurance intermediaries and PCWs to complete a short survey to say how ready they are for the new general...
EBA consults on limited network exclusion guidelines
EBA is consulting on draft Guidelines to provide clarity on the application of the limited network exclusion in PSD2. The exclusion is supposed to be used for products like store cards, fuel cads, public transport cards...
FCA publishes Business Plan
FCA’s 2021/22 Business Plan highlights: how FCA has to change as the environment in which it operates changes and how investment in technology and changes in culture are key to this; the need to enable customers...
FCA updates on BI
FCA’s latest update on business interruption insurance: publishes the Supreme Court Order varying the High Court declarations, and a table highlighting the most relevant declarations by policy type; publishes the...
CLLS responds on fin proms
The City of London Law Society has responded to FCA’s discussion paper on changes to the financial promotion rules for high risk investments and for firms approving financial promotions. It: is concerned the...
FCA bans fraudster
FCA has banned Matthew Creed from performing any regulated activity. Mr Creed had been an approved person at a firm from 2005 – 2019, and was also the director of an unauthorised company from 2002- 2013. In 2012...
FCA consults on modifying derivatives list on LIBOR transition
FCA is consulting on modifications to the list of derivatives subject to the derivatives trading obligation in line with Articles 28 and 32 of UK MiFIR in the light of interest rate benchmark reform and BoE’s...
FCA writes to Work and Pensions committee on online safety
FCA has written to the chair of the Commons Work and Pensions Committee highlighting the role that online platforms play in putting consumers at risk by exposing them to advertisements for financial products. It notes...
ESMA warns of PFOF risks
ESMA has issued a warning to remind firms of the investor protection concerns around receipt of payment for order flow. It has previously said that it is unlikely that the receipt of PFOF would be compatible with MiFID...
BoE publishes Financial Stability Report July 2021
BoE has published the latest Financial Stability Report. Key messages include: pleasing strength in the banking markets to support the recovery of the economy – banks are able to lend to households and businesses...
EIOPA publishes opinion on risk mitigation techniques
EIOPA has published an opinion on the use of risk mitigation techniques by insurers and reinsurers. It notes the importance of the structures that have emerged, but also the importance of having a proper balance between...
Treasury updates AML advisory
Treasury has updated its advisory notice on high right third countries for AML purposes. The notices follow the FATF updates, and the list replicates the FATF list. Post-Brexit, Treasury now included the list in...
SFO publishes Amec Foster Wheeler Energy DPA
SFO has published the DPA judgment from Lord Justice Edis in respect of Amec Foster Wheeler Energy. The firm is now owned by John Wood Group which was willing to undertake to meet the firm’s liabilities. ...
Home Office warns on SARs and civil litigation
The Home Office has issued a circular setting out its position on the use of SARs in private civil litigation. Its aim is to protect reporters and subjects of SARs and the integrity of the regime. A previous circular...
FATF reports on technology opportunities and threats
FATF has published a paper looking at the opportunities and challenges of new technologies for AML and CFT. The report looks at emerging and available technology based solutions, and the conditions, policies and...
ESAs report on F&P, internal governance and remuneration
EBA and ESMA have reported on: assessment of suitability of members of the management body and key function holders under CRD V and MiFID 2. The guidelines focus on the revisions brought in by the IFR and their affect...
Appeal refused on FCA action against unauthorised firm
The application to appeal has been refused in the case of FCA v 24 Hr Trading Academy. In this case, the High Court had held that 24 Hr Trading Academy had beached the regulated activities and financial promotion...
FCA writes to insurance intermediaries on client money
FCA has written a Dear CEO letter to insurance intermediaries, Following its work on financial resilience and its concerns that some firms risked not having adequate financial resources, it carried out a review of how...
Mansion House speech heralds new era for UK financial services
Rishi Sunak’s Mansion House speech has outlined the reforms the UK is undertaking so the financial services industry can lead both domestically and internationally in the sector. Treasury also produced a roadmap...
Wolfsberg Group highlights importance of showing effective AML programme
The Wolfsberg Group has reminded of its suggestions for how financial institutions can have effective AL/CTF compliance programmes, and of its 2020 recommendations for ensuring effective outcomes. The reminder comes...
EU close to credit servicer Directive and proposes CCD changes
The Council of the EU has supported a proposal for a Directive to regulate credit servicers and purchasers, following concerns that the regulation (or otherwise) of those who buy and service loans, particularly non...
LSB stresses importance of good governance
LSB has stressed the importance of governance as underpinning everything a firm does, and has started a series of publications to help firms. Its latest guidance looks at how to achieve best practice. The guide...
FCA finds “host” fund manager weaknesses
FCA has carried out a review of authorised fund managers that provide hosting services to third party investment managers outside of their corporate group. It concluded that some firms were operating well but others did...
Dear CEO letter on retail bank AML failings
FCA has finally published the Dear CEO letter it sent to retail banks on 22 May on AML failings. The letter sets out the common themes FCA has observed and highlights its disappointment that it continues to find certain...
Damning report on EU AML efforts
The European Court of Auditors has published a damning report on the EU’s efforts to fight money laundering in the banking sector. A review found institutional fragmentation and poor coordination at EU level. The...
FCA to host Business Plan webinar
FCA is to unveil its business plan on 15 July and is holding a webinar at which Nikhil Rathi will set out his view of FCA’s role and answer questions.
FATF holds plenary
FATF has held its June 2021 plenary session, at which it finalised a number of reports. Key outputs include: no changes to the highest risk jurisdictions, but Haiti, Malta, the Philippines and South Sudan have been made...
FCA updates rules
FCA’s latest Handbook notice confirms updates to: TC to improve information sharing on retail advisers’ failure to comply with appropriate FCA rules and to update on accredited qualifications. COMP to...
Premium finance disclosure changes delayed
FCA has published an update to its feedback statement and new rules on general insurance pricing practices, which means that the new rules relating to premium finance disclosure will take effect on 1 January 2022...
BoE and Pay.UK collaborate on payment messages
Pay.UK and BoE have announced a collaboration on ISO 20022 payment messages. ISO 20022 will be implemented in the CHAPS and NPA. The collaboration started in 2018 and BoE and Pay.UK will continue to work together to...
BoE takes action over Euroclear settlement outage
BoE has announced it is taking supervisory action over the operational settlement outage suffered by Euroclear UK and Ireland in September 2020, which caused significant market disruption. The outage was caused by a...
FCA publishes VOP refusal
FCA has published its final notice explaining its reasons for refusing a firm’s application to vary its permission. Gedik International Limited was authorised in February 2020 as an agency brokerage with a set of...
Treasury Committee calls for FCA culture shift
The Treasury Committee has published a unanimously agreed report on FCA’s regulation of London Capital and Finance, in which it expresses the view that FCA cannot justify expecting firms it regulates to comply...
IAIS publishes application papers
IAIS has published application papers on: resolution powers and planning; the paper looks at the objectives and concepts of resolution of insurers, entry into resolution, resolution powers and plans, resolvability...
More of FS Act comes into force
The second Commencement Order under the FS Act 2021 brings into force: on 28 June the provisions on forfeiture of money in relation to EMIs and payment institutions, as they extend to Northern Ireland; and on 1 July...
Treasury responds on Fin Proms
Treasury has published its response following its consultation on a regulatory regime for the approval of financial promotions. It had been concerned about: lack of expertise in approver firms; lack of due diligence by...
FCA speaks on tough regulation and the future
Nikhil Rathi has spoken on building a regulatory environment for the future. He focused on the opportunities Brexit has given for the UK to tailor its rules. Much of his speech addressed ESG issues, but he noted also...
FCA consults on regulated firm climate disclosures
FCA is consulting on enhancing climate-related disclosures by asset managers, life insurers and regulated pension providers. Following on from the introduction of disclosure rules for the most prominent listed companies...
PRA consults on financial holding companies
PRA has issued a further consultation on applying existing prudential consolidation requirements to financial holding companies and mixed financial holding companies approved or designated under FSMA. The proposals:...
LSB updates on CRM code review
LSB has published its follow up review of the CRM Code in respect of firms’ approach to reimbursing customers. Provision R2(1)(c) of the Code allows firms to decline reimbursement in specific cases. LSB looked at...
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