FIN.

Author - Emma Radmore

FCA offers Brexit help

FCA has set up a dedicated phone line for firms needing to ensure they are prepared for a no-deal Brexit, and also worked to signpost all its online resources. It expects firms to have planned properly for it. It notes...

FCA updates SMCR resources

FCA has updated its checklists for firms preparing for the SMCR.  It has added some text about the submission of Form K. It has also added a section for sole traders to its guidance on conversion from the Approved...

FATF updates compliance table

FATF has published further reports on Iceland, Hong Kong, China and Greece’s AML/CFT measures and as a result updated its consolidated table of assessment ratings.

FCA updates on consultations and feedback

The latest Policy Development Update highlights a number of papers due before the end of 2019: feedback on the investment platforms market study remedies; policy proposals on regulatory fees and levies; permitted links...

FCA publishes quarterly consultation

FCA’s latest quarterly consultation covers a number of minor changes to the rules that will be made only if there is a no-deal Brexit on 31 October,  and also other miscellaneous amendments including: minor...

FCA publishes Directory entry form

FCA has published forms and guidance for firms that need to submit data for the new Directory of certain individuals working for financial services firms. The guidance explains what FCA considers to be “customer...

OFSI publishes frozen asset review guidance

OFSI has published guidance on the annual frozen asset review reporting form.  The guidance explains the requirement for all persons who hold or control funds or economic resources that belong to or are controlled by a...

Government answers AML questions

In response to questions posed in Parliament, the Secretary of State for the Home Department confirmed that the UK has not opted in to the Directive on criminal sanctions for money laundering our legislation is already...

EBA speaks on AML

Jose Manuel Campa, EBA Chair, spoke to ECON on the importance of consistent application of AML legislation. He explained the ESAs’ current powers, and the guidelines already published. He said EBA is working on...

FCA speaks on skimmers and scammers

Charles Randell has spoken on FCA’s commitment to the Economic Crime Plan and the importance of embedding fraud prevention in the development of new savings and investment policies. He encompassed within...

PRA writes to banks on AML risks

PRA has written a Dear CEO letter bringing banks’ attention to EBA’s opinion on the ML/TF risks in prudential supervision, and confirm it will continue to consider these concerns as part of its prudential...

HMRC cracks down on ML breaches

HMRC has updated its list of actions against businesses that are not complying with the MLR and published details of a £7.8m fine levied on a money transmitter.  It imposed the fine on Touma Foreign Exchange Ltd after...

Tabernula defendant imprisoned

As a result of a conviction for money laundering following the “operation Tabernula” investigations, Richard Baldwin has been sentenced to 5 years and 8 months imprisonment.  This follows convictions of...

FCA updates on Remuneration Code expectations

FCA has written its annual letter to RemCo chairs of Level 1 firms. The letter sets out what FCA has found on accountability, ex-post risk adjustments and diversity and inclusion.  The letter: notes the responsibilities...

CMA takes action over PPI reminder failures

CMA has ordered RBS and Santander to take remedial action after they did not send, or sent inaccurate annual PPI reminders to customers. The banks must now appoint independent bodies to audit their PPI processes and put...

ESAs respond on crypto assets

EBA and ESMA have published a joint response to the Commissions’ paper on crypto-assets.  The response explains the work the ESAs are undertaking, including an imminent national stock-taking exercise on the...

ASA takes action on misleading crypto ad

ASA has told HDR Global Trading to take down an ad and ensure in future that financial information was set out so as to be readily understood by the audience it was aimed at and that the risks of the relevant...

NCA gets UWO against Northern Irish woman

NCA served an unexplained wealth order , its 4th in total, on a Northern Irish woman living in London with suspected links to organised crime, in respect of her financing of 6 properties worth over £3m.

Transparency International Annual Plan

TI has published its annual plan for 2019-20. Key points include: the growth of TI to over 50 staff in the past 10 years should now lead to a period of stabilisation; the key successes of last year included the...

FCA updates skilled persons statistics

FCA has released the figures for skilled persons reports it commissioned in Q1 2019/20. It commissioned 9 reports in total – of which 3 related to each of retail lending and wholesale financial markets, 2 to...

FCA publishes SMCR stocktake report

FCA has published the findings of its review on how the SMCR has been embedded in the banking sector. It hopes banks and solo-regulated firms will find the conclusions of use and interest, although it notes the review...

Up next from FCA

The latest version of FCA’s Policy Development Update highlights: expected feedback on Investment Platforms Market Study Remedies by the end of the year; potential policy statement on general insurance value...

FATF updates compliance ratings

FATF has published an updated table of assessment ratings. The ratings show how each member has fared in the assessments of compliance with each FATF standard. It has also updated its procedures for its fourth round of...

FCA publishes SMCR final rules

FCA has at last published its final rules on extending the SMCR to solo-regulated firms, including CMCs. It has, in the main, implemented the changes it consulted on in its consultation on “optimising” the...

Regulators tweak exit arrangement rules

FCA has announced an extension to the directions made under its temporary transitional power which it introduced in February.  The direction will now give firms until 31 December 2020 to make the necessary adjustments...

Commission calls for better AML measures

The European Commission is not happy with the levels of domestic implementation of various AML/CTF measures in Member States. It has carried out research and issued a Communication and several reports.  Key conclusions...

Commission adopts unfair terms guidance

The European Commission has adopted a guidance note on the Unfair Contract Terms Directive.  The note covers: the objectives and scope of the directive; key terminology such as “supplier” and...

FCA consults on vulnerable customer guidance

FCA has published a guidance consultation on what it considers the Principles require of firms in terms of fair treatment of vulnerable customers. It thinks firms have made big improvements generally, but now wants to...

Regulatory framework review underway

The Chancellor has launched the first phase of the Financial Services Future Regulatory Framework review by publishing a call for evidence that looks primarily at how co-ordination between regulatory authorities could...

JMLSG updates on Guidance

JMLSG has thanked all those who responded to its proposed changes on the chapters in Part II of its guidance addressing credit unions and brokerage services to funds. It has now put the finalised chapters to Treasury...

SFO confirms DPA with metals tech firm

The SFO has announced that in 2016 it entered into a DPA with Sarclad Ltd, a technology provider for the metals industry. The DPA related to charges of corruption and failure to prevent bribery between June 2004 and...

Government publishes economic crime plan

The Government, in conjunction with UK Finance, has published its 2019-2022 economic crime plan, setting out how it proposes to progress the priorities agreed by the Economic Crime Strategy Board in January.  The key...

HMRC updates MLR appeals guidance

HMRC has updated its website with guidance on how to appeal against an HMRC decision, and how it sets penalties. The guidance explains what HMRC may levy penalties for, and what its remedies are. It also explains that...

ESMA updates MiFID 2 FAQs

ESMA has updated its FAQs on MiFID 2 and MiFIR in respect of investor protection and intermediaries.  There is a new question on how to classify financial instruments under RTS 27 for best execution purposes when ESMA...

FCA updates on SMCR final rules

FCA has still not made its final rules on the SMCR.  It cannot do so until Treasury has published the necessary commencement order.  FCA says it has been working with Treasury on this, and has agreed with it a later...

Treasury publishes AML supervision report

Treasury has published its AML and CTF supervision report for 2017-18. The report highlights the UK’s FATF evaluation report – which it notes recognises the UK regime as the strongest assessed to date.  But...

FCA publishes annual report

FCA’s Annual Report and Accounts for 2018/19 lists its highlights from the past year, and appends several reports from specific business focuses.  FCA notes that alongside deciding over 4,000 applications for...

FCA updates MLR registration page

FCA has updated its page giving guidance to firms that are not authorised but nevertheless require to be registered with FCA for the purposes of the MLRs (such as commercial lenders, financial leasing entities and own...

EBA reports on POG guidance implementation

EBA has reported on how industry has implemented its Product Oversight and Governance arrangements guidelines. It found a mix of good and bad practices. Some of its criticisms were that: often the manufacturer’s...

FCA updates SMCR page

FCA has reminded solo-regulated firms that if they want to opt up to the Enhanced firm category, they must submit their Form K (which all Core and Enhanced firms must submit anyway) together with their Form O, by 24...

FCA reviews non-bank PSP safeguarding

FCA has carried out a review of  the safeguarding arrangements of 11 non-bank PSPs. It wanted to see how well they complied with the requirements of the EMRs and PSRs and found both good and bad practices. Among its key...

FCA speaks on regulating innovation

Christopher Woolard has spoken on regulating financial innovation. He explained how valuable early engagement is, and how working with innovative firms helps FCA to get a good bird’s eye view of what it should...

FOS consults on funding

FOS is consulting on its future funding model.  It says it is looking forward to a time when it is not dominated by PPI, and is looking at how it should: rebalance the proportion of income it gets from its levy as...

Financial Crime Compliance Course

We are pleased once again to host the Financial Crime Compliance Professionals course for the Compliance Register.  The course takes place this year on 25 September, and we will be presenting the morning session. ...

FCA makes CFD limiting rules

FCA has confirmed the restrictions it is putting in place for firms that offer CFDs to retail customers. It is requiring all firms that offer  CFDs and CFD-like options to retail consumers to: limit leverage –...

Treasury updates on mini-bond review

Treasury has written to Nicky Morgan updating on the progress of its review into the failure of London and Capital Finance and the government and FCA review of mini-bonds.  Alongside the FCA review into the...

Wolfsberg Group publishes CBDDQ materials

The Wolfsberg Group has published a set of materials that supplement its correspondent banking DDQ.  The materials include a set of videos that banks can use as training materials, and a detailed review of the DDQ...

FCA summarises new rules

FCA’s latest Handbook Notice confirms the following rule changes: the changes to, mainly MIPRU, MCOB and SUP that took effect on 4 June in relation to crowdfunding platforms that offer home finance products, where...

FATF reports to G20

FATF has reported to the G20 Leaders’ Summit. The report summarises FATF’s current and ongoing workstreams, including its current focus on virtual assets, improving transparency and the availability of...

EU Council adopts crowdfunding position

The Council of the EU has adopted a position it hopes will make it easier for crowdfunding platforms to provide services across the EU, by setting minimum requirements that the platforms must meet and harmonising...

PSR updates on access and governance

The PSR has published its fourth report on access to payment systems and governance of system operators.  Key developments since the last update are: 12 new participants joining FPS, Bacs and CHAPs in 2018 (with the...

FCA confirms market code recognition

FCA has confirmed it is recognising the FX Global Code and the UK Money Markets Code. These are the first codes to be recognised under its new scheme. While FCA will not supervise firms or individuals directly against...

FATF plenary updates on strategy

The recent FATF plenary, under US presidency, celebrated FATF’s 30th birthday. The meeting discussed: key strategic initiatives, including how to mitigate risks from virtual asset activities, and how to assess...

FCA publishes first perimeter report

FCA has published the first of what will be an annual report on its regulatory perimeter. Among other things, the report is designed to explain what challenges the perimeter is presenting and whether there might be a...

CMA updates on loyalty penalty work

CMA has updated on its work on the loyalty penalty. It says key decisions are due shortly and that two enforcement cases are underway. It says it expects regulators to take strong action where they find problems and...

Law Commission calls for SAR guidance

The Law Commission has criticised the time that is wasted because lack of proper guidance leads to too many low quality SARs being made, which wastes both the time and money of those gathering information to report, and...

CLLS warns on MLD5 crypto plans

The City of London Law Society has published its response to Treasury’s consultation on MLD5 implementation. Its comments focused on two key areas: crypto-assets: CLLS is nervous about the suggestion that the UK...

FCA to take no further action on RBS GRG

FCA has published its final report on its investigation into the RBR GRG group’s treatment of SMEs. Its last report was nearly a year ago, and at that time FCA explained its plan to undertake a comprehensive...

FCA consults on financial resources

FCA is consulting on the approach it takes to assessing adequate financial resources – and what it means by the term. The paper has been prompted by the levels of compensation FSCS has paid out relating to firms...

BVCA responds on MLD 5

BVCA has responded to Treasury’s consultation on MLD5 implementation. Its key observations are: where the underlying CDD obligation involves subjectivity or judgement, the concept of taking “reasonable...

Up next from FCA

FCA’s latest Policy Development Update heralds a few interesting papers on the near horizon, including: a consultation in June on alternatives to high cost credit; perhaps, a policy statement on general insurance...

FCA speaks on tech activism

Nick Cook, FCA’s director of innovation, has spoken on the need for regulators to keep up to speed with innovation.  He spoke about: the continuing success of the FCA sandbox and the high proportion of firms that...

FCA tells CMCs what it expects

FCA has written a Dear CEO letter to CMCs who have temporary permissions telling them how it expects them to behave then making financial promotions or acting for their customers. There has been an increase in cases...

FCA extends temporary permissions deadline

FCA has confirmed the deadline for EEA firms to notify it of their intention to use the temporary permissions regime is now 30 October. FCA has updated its website with details of how the TPR applies, and its policy for...

FCA publishes unfair term undertaking

FCA has published an undertaking from Capital Financial Management Limited. It considered two term in the company’s debt management contract gave the firm sole discretion on what it could charge customers who...

Have you replied on MLD5?

We’ve written a detailed article on Treasury’s proposals for MLD5 implementation to go with our summary post.  Deadline for comment is 10 June.

Fund umbrella providers come under fire

FCA has published the results of its review into how firms in the investment management sector that have Appointed Representatives comply with their regulatory obligations as principals.  There are over 1000 ARs in the...

BoE speaks on “stylish regulation”

Sam Woods has spoken on how UK financial regulation might look post-Brexit. He looked at the 6 principles of an effective regulatory framework and how the SMCR model of legislation can deliver them. robust prudential...