The House of Lords EU Financial Affairs Committee has written to Rishi Sunak urging the government to set up a structured dialogue with the EU that will support cross-border financial services. It wants: to minimise...
Author - Emma Radmore
Emma Radmore
Regulator Covid-19 Update 27 March including key worker update
On 27 March: FCA restated its expectation that firms have in place tested contingency plans to deal with major events and that the plans have been tested. In ensuring this, FCA and the BoE will actively monitor firms’...
FCA Covid-19 response to date
FCA is constantly updating its website on its response to Covid-19. We have also written an article summarising this advice at at the morning of 26 March. The FIN team will keep updating items as appropriate within...
LSB gives business lending practice examples
LBS has published an updated guide for firms, setting out examples of the approach they may wish to consider on product sales, to be compliant with the Standards of Lending Practice for business customers. The guidance...
FCA updates mortgage firm Covid-19 guidance
FCA had provided additional guidance to mortgage firms on payment holidays relating to Covid-19. We reported in this post on the original guidance. FCA has previously required firms to offer payment holidays if they...
FCA delays Directory publication
FCA had been due to publish the initial directory of certified and assessed persons on its Register at the end of March, but is now delaying it for at least a month. Dual-regulated firms had had to submit their data for...
Regulator Covid-19 Update 26 March
On 26 March: FCA, while confirming its intention to be flexible to allow firms to keep operating, noted that they should also be planning ahead and ensuring sound management of their financial resources. It says buffers...
Regulators give leeway on company accounts
The FRC, PRA and FCA have announced a series of actions to help listed companies during the Covid-19 crisis. Listed companies may have an additional 2 months to publish audited financial statements. But issuers are...
Government confirms extension of TTP
In a statement to Parliament, Lord Agnew of Oulton, the Minister of State, has noted a statement from Treasury that it expects “in general” the same laws and rules to apply as the transition period ends, it...
Covid-19 regulator update 24 March
Late on 23 and on 24 March: PRA announced amendments to regulatory reporting for insurers in response to EIOPA’s recommendations. There will be between 2-8 weeks’ delay for most aspects of harmonised...
ESMA extends response dates
ESMA has extended the response date of all consultations due to close on or after 16 March by 4 weeks. This includes the consultation on technical standards for the provision of investment services and activities in the...
FSCS comments on LCF judicial review
As a judicial review action starts in respect of eligibility of London Capital & Finance investors for FSCS payment, FSCS commented that this is a large case, and that it had carried out extensive factual...
Covid Corporate Financing Facility exempt from FSMA
Treasury has made legislation to exempt the Government’s Covid Corporate Financing Facility from the need for authorisation under FSMA (except in relation to insurance business – which it is not proposed the...
Regulator Covid-19 update for 20 March, including on key worker categorisation
On 20 March: BoE and PRA announced supervisory and prudential prudential policy measures to address the challenges of Covid-19: including: cancellation of the annual stress test for 2020 pausing until further notice the...
CMA varies Santander directions
CMA has varied the Directions to Santander in respect of its Open Banking Release. It had previously varied the directions in January 2019 and considers Santander’s continued failure to comply with the...
FMLC responds on crypto taxonomy
FMLC has responded to the European Commission’s consultation on classification of crypto assets. The detailed response notes: the current parallel classification of cryptoassets in the UK on the one hand and the...
JMLSG consults on crypto guidance
JMLSG is consulting on a new part to its sectoral guidance, to cover cryptoasset exchange providers and custodian wallet providers. The new Part 22: defines crypto-assets, noting some examples which firms should...
PIFMA concerned about Open Finance
PIFMA has responded to FCA’s call for input on open finance. While it applauds FCA’s stance on encouraging innovation, and feels the financial services sector has lagged behind other sectors in adopting...
Gambling Commission fines for AML failings
The Gambling Commission has fined Betway £11,6m for a series of “social responsibility” and money laundering failings linked to 7 VIP customers. The Gambling Commission found that: generally, because the...
EU writes to Chancellor on equivalence
Valdis Dombrovskis has written to Rishi Sunak on equivalence assessments. The letter merely notes that both sides should start to assess equivalence as soon as possible, on the basis of the Political Declaration, with a...
FOS looks at insurance coverage
FOS’s latest Ombudsman News looks at: coronavirus: so far, FOS has not seen many complaints on the impact of the virus, but expects it will see more complaints particularly in relation to travel insurance, medical...
Treasury Committee responds on IT failure and economic crime reports
The Treasury Committee has commented on the responses from Government and regulators on: its October report on failures in the IT industry. The report had concluded, among other things, that: regulators need to improve...
TI welcomes economic crime levy
Transparency International has welcomed the Government’s announcement of an economic crime levy on firms subject to the MLRs. The Government will consult on its plans later in the spring.
Treasury feeds back on pre-paid funeral plans
Treasury has published the outcome of its consultation on pre-paid funeral plans. Respondents to its consultation were concerned at current consumer detriment, and called for compulsory regulation for the sector. The...
Treasury publishes outcome of regulatory framework review
Treasury has published the outcome of the consultation on the financial services future regulatory framework. The Government’s view is that the institutional architecture for regulation remains appropriate and is...
Treasury consults on UK/Gibraltar FS access
Treasury is consulting on the post-Brexit market access arrangements between the UK and Gibraltar. Constitutionally, Gibraltar is an Overseas Territory with internal self-government. Responsibility for financial...
Treasury Committee calls for better carbon footprint awareness
The Treasury Committee, as part of its inquiry on decarbonisation and green finance, is concerned that consumers need better help to understand the carbon footprint of financial products and has written to BoE and FCA...
FCA publishes mortgage switching research
FCA has released its latest report on mortgage switching, from which it concludes there is a case for intervening to help customers who do not switch. It has found that the reasons people have for not switching...
FCA compares bank fraud controls
FCA has published data on the fraud controls banks have in place, intended to help consumers compare what different banks do. UK Finance asked banks: what their approach to fraud prevention was; what controls the firm...
FCA calls for evidence on wholesale market data
FCA has launched a call for input on access and use of data and advanced analytics in the wholesale markets. It wants to understand the value to market participants and whether the information is being competitively...
FATF publishes guidance on digital ID
FATF has published a report giving guidance to regulators and firms on how to determine whether a digital ID is an appropriate CDD tool. The report looks at how digital ID systems work, and what their key features are...
FCA speaks on digital assets
Therese Chambers has spoken on the financial crime risks presented by stablecoins and other digital assets. She spoke of: early attempts to launch non-state backed digital currency, and Bitcoin’s predecessors...
Up next from FCA
FCA plans the following publications: consultation on exit fees in investment platforms and comparable firms (March); consultation on listing of OEICs (Q1); consultation on changes to DEPP, EG and the financial crime...
FCA speaks on vulnerable customers
Nisha Arora has spoken on FCA’s approach to ensuring firms treat vulnerable customers fairly. She stressed the need to move away from a tick-box approach to having policies to deal with vulnerability to showing...
FCA drives forward culture changes
FCA has published a Discussion Paper on how to drive purposeful cultures. The paper comprises a number of essays looking at how a good purposeful culture should lead to better outcomes for consumers, markets and...
FCA makes Covid-19 statement
Regulators are working to ensure firms are responding effectively to the consequences of the Covid-19 outbreak. FCA expects all firms to have contingency plans in place to deal with major events, and says it is working...
EIOPA speaks on digital finance risks
Fausto Parente, EIOPA executive director, has spoken on managing the risks of digital finance in cyber underwriting. He spoke of the value of data to insurers in enabling them to customise customer products, but the...
FCA publishes life insurance outsourcing review
FCA has published the findings from its review into outsourcing in the life insurance sector. The review stemmed from FCA’s awareness that the sector relies heavily on outsourcing and third party providers, and...
CLLS views on TRS extension
CLLS has input its view on the extension to the TRS. As with other respondents, it notes several types of trust it thinks should be out of scope, including: trust arrangements that are incidental to a corporate...
Government “considering” corporate economic crime offence
In response to a question in Parliament, the Government said it is still considering its response on introducing a corporate offence for economic crime – on which consultation closed in 2017.
FCA makes new travel insurance and other rules
FCA has made 3 sets of new rules. changes to COBS 19 to ensure that pension scheme members can properly find the information they need about costs and charges to ensure they get good value for money from their pension...
More UK/EU policies revealed
The Government has published a policy paper on its approach to the future relationship with the EU. It sets out the Government’s suite of proposals, based around the desire for a comprehensive Free Trade...
Treasury updates AML advisory
Treasury has updated its AML advisory in the light of the most recent FATF plenary. The notice confirms that counter measures and enhanced due diligence should be applied in respect of North Korea and Iran, and...
Barnier to be EU negotiator on post-Brexit issues
The Council of the EU has adopted a decision authorising negotiations between the EU and UK towards a new partnership and authorising the European Commission, in the person of Michel Barnier, as the EU negotiator. The...
Lawyers and industry call for more TRS exclusions
ICAEW has responded to the Treasury/HMRC consultation on the extension to the Trust Registration Service in the wake of MLD5. While it welcomes the efforts to narrow the scope of express trusts that will be required to...
FATF blacklists Iran
At FATF’s February plenary meeting it: updated its list of high risk jurisdictions. Notably, it decided Iran has not met commitments to complete its action plan, or enact the Palermo and Terrorist Financing...
Financial services after Brexit updates
The EU Financial Affairs Sub-committee has opened an inquiry into financial services after Brexit and has been taking evidence. Most recently it has been questioning the BoE and FCA. They largely discussed the key...
Commission consults on MiFID 2/MiFIR framework
The European Commission is consulting on the effectiveness of the regulatory framework for investment firms and market operators under MiFID 2 and MiFIR. The consultation runs until 20 April and requests responses by...
ESMA updates MiFID 2 FAQs
ESMA has updated its MiFID 2 and MiFIR FAQs on investor protection. The new questions focus on how the revised BRRD applies
TI writes to SFO on DPA regime
In the light of the Airbus DPA, Transparency International and Spotlight on Corruption have written to Lisa Osofsky asking that SFO evaluates how DPAs are used to ensure the regime is fair and consistent and provides a...
FCA bans motor finance ads
FCA has banned a range of adverts for motor finance issued by Rix Motor Company Limited. The ads, variously: did not include representative examples of the costs of credit, or included them in a way that made them...
HMRC investigating 30 for CFA breach
In response to several FOIA requests, HMRC has published statistics on what it is doing to police the CFA offence of failure to prevent facilitation of tax evasion. As at the end of 2019, it had 9 live investigations...
EP publishes negotiating mandate with UK
The European Parliament has published its proposed mandate for a new partnership with the UK. The declaration acknowledges that the “close relationship” that will subsist and which, according to the...
FCA updates authorisation application fee
FCA has increased the application fee for moderately complex applications to £5,500 – so the fee tranches for standard financial services applications (excluding asset managers and consumer credit firms) are...
EU gets tough on AML
The European Commission has sent formal notice letters to 8 Member States for failing to tell it about their implementation measures for MLD5. It requires a response within 2 months, after which it may move to a...
Up next from FCA
The latest Policy Development Update highlights the following publications before the end of Q1 2020: policy statement on fees and levies; consultation on exit fees in investment platforms and comparable firms;...
Court dismisses UWO appeal
The Court of Appeal has dismissed an appeal against the first UWO imposed under the powers the CFA gave to the NCA. The UWO had been imposed in relation to the Azeri wife of an Azeri banker. A property had been...
Regulators warn firms on selling personal data
The FCA, ICO and FSCS have warned regulated firms and insolvency practitioners of the need to be responsible when dealing with personal data. The regulators have become aware of sales of client data to CMCs either...
FCA writes strategy letter to platforms
FCA’s latest portfolio strategy letter to CEOs has been sent to platforms. It starts by making the point that it expects firms will have used the SMCR to ensure clear accountability within senior management and...
EBA review shows AML supervisory improvement needed
EBA has published the results of its first review of AML/CFT supervision of banks in the EU. It says most of the authorities included in its study are taking significant steps to improve the quality of supervision and...
ESMA takes action on suitability
ESMA is launching a common supervisory action with national authorities on the application of the MiFID 2 suitability rules. It feels it needs to gauge how intermediaries have been applying the requirement and help in...
FCA updates on skilled persons figures
FCA has published its latest figures on the numbers of skilled persons reports it has commissioned. During Q3 of 2019/2020 it commissioned 10 – of which 5 related to wholesale financial markets, 2 each to retail...
ESMA reports on product intervention
ESMA has published its final report on product intervention requirements under MiFIR. It notes that nearly all national authorities have used the measures in relation to marketing or selling binary options or CFDs to...
JMLSG consults on guidance update
JMLSG is consulting on updates to its guidance to take account of implementation of MLD5 and also make various other clarifications. The changes (consulted on in marked up form) will affect chapters 4,5,7 and 8 and the...
UK AML post-Brexit
Emma Radmore was interviewed by Money Laundering Bulletin on what might happen to UK AML laws in a post-Brexit world.
FCA writes strategy letter to platforms
FCA’s latest portfolio strategy letter to CEOs has been sent to platforms. It starts by making the point that it expects firms will have used the SMCR to ensure clear accountability within senior management and...
FCA updates further on post-Brexit issues
FCA has further updated its website with information on Brexit and Temporary Directions. It explains how: It will not need to use the Temporary Transitional Power it had previously made directions under, as the...
OFSI updates sanctions guidance
OFSI has updated its general sanctions guidance in respect of its application to UK financial sanctions regimes under SAMLA. Separate guidance still applies to the EU regimes. The guidance contains explanations of how...
UK and EU regulators update on Brexit
On Brexit day: FCA has issued an update including new Handbook Instruments, including an instrument providing guidance on the implementation period and updates to various existing guidance about EU non-legislative...
FCA and Lloyds update on Brexit
FCA and Lloyd’s have both issued releases confirming how firms should act in the immediate aftermath of Brexit. FCA confirmed that during the implementation period to 31 December EU law will continue to apply. So...
DExEU updates on FS equivalence post-Brexit
The Department for Exiting the EU has published an updated communication from the European Commission on equivalence in the area of financial services. The documentation notes that temporary equivalence decisions are...
Government consults on TRS
Treasury and HMRC are consulting on the technical measures needed to extend the Trust Registration Service. The consultation includes draft legislation and proposals on the types of express trusts that will need to...
Christopher Woolard new FCA Interim Chief
Christopher Woolard has been appointed as Interim Chief Executive of the FCA once Andrew Bailey leaves to become Governor of the BoE.
Treasury responds on MLD5
Hot on the heels of Parliamentary criticism, Treasury has now published its response to the consultation on MLD5 implementation. The response confirms the Treasury’s position in: expanding the definition of...
Parliament criticises lack of MLD5 feedback
Hansard reports criticism of the way in which Treasury announced the measures implementing MLD5. In particular, it was disappointing that Treasury did not publish copies of the feedback on consultation and impact...
EU to prioritise green deal and MLD5 implementation
In his opening remarks to the ECOFIN conference, Valdis Dombrovskis, handing over to the new Croatian Presidency, singled out as key developments: the Green Deal or Sustainable Europe Investment Plan, the success of...
FCA writes supervisory priorities letter to financial advisers
FCA’s Dear CEO letter to financial advisers identifies the following key harm risks on which it will focus its supervisory strategy: consumers receiving advice that is not suitable for their needs and objectives:...
FCA updates on asset management supervisory strategies
FCA has: written a Dear CEO letter about its asset management supervision strategy. The letter outlines FCA’s view of the key causes of harm asset managers can post to their customers or the markets in which they...
SFO updates compliance programme guidance
SFO has published an updated version of its internal guidance on how it evaluates a compliance programme. The guidance is part of SFO’s Operational Handbook. When SFO is investigating an organisation, it will use...
FCA updates on RDR and FAMR review
FCA has provided an update on its work on the RDR and FAMR review, on which it expects to fully report later this year. Its most recent work involved surveying around 400 firms for information on their advice services...
FSCS announces Plan and Budget
FSCS has published its full Plan and Budget for 2020/2021. As well as the indicative levy of £635m (£87m more than the current year, mainly because of a rise in SIPP operator claims) and management expenses budget of...
Regulators consult on FSCS levy
PRA and FCA are consulting on the FSCS Management Expenses Levy Limit for 2020/2021. The proposed limit is £78.2m management expenses budget (a nearly 5% increase on the current year) and a £5m contingency reserve...
Companies House confirms BO reporting requirements
Companies House has confirmed the new requirements under the MLRs for firms to report PSC discrepancies to Companies House. Firms need to tell Companies House about any material differences between beneficial ownership...
HMRC updates on MLRs
HMRC has updated its website to reflect the changes the MLRs have brought and, in particular, the new classes of entities that fall within the regulated sector. It will issue further guidance shortly, but has confirmed...
FCA updates AML pages
FCA has updated its pages on AML to take account of the coming into force of the changes to the MLRs implementing MLD5 and the regime for registration of those in the cryptoasset sector. It also confirmed the...
Duty of Care Bill progresses in Lords
The Financial Services (Duty of Care) Bill, the Private Members’ Bill to require FCA to make rules requiring authorised firms to owe a duty of care to consumers in their regulated activities, and originally...
FCA confirms crypto-AML requirements
FCA has formally confirmed that it has, as of 10 January, become the AML/CTF supervisor of businesses carrying on certain crypto-asset activities that now fall under the MLRs. It reminds market participants that no new...
Up next from FCA
FCA plans a number of important publications during Q1 2020 including: consultation on exit fees in investment platforms and comparable firms potential policy statement on general insurance value reporting measures and...
FCA takes action against illegal deposit taker
FCA has started civil proceedings against Briths Managment (sic) Solution Limited, Soccer League International Limited, Soccer League UK Limited and various individuals, for alleged unauthorised deposit-taking. It...
FCA writes to insurance CEOs on non-financial misconduct
FCA has written to the CEOs of wholesale general insurance firms reminding them of the importance of high standards of culture and conduct throughout their business. It expects CEOs to identify what drives behaviour...
UK Finance explains COP
UK Finance has updated its website to explain how banks are introducing Confirmation of Payee over the next few months, to give customers greater assurance that they are sending payments to the right recipient. UK...
FCA updates website on MLRs
FCA has updated its website to provide information for firms on the amended MLRs following MLD5 implementation. It stresses the changes the new MLRs bring in relation to: high-risk factors – the MLRs now specify...
Treasury makes MLR changes for MLD5
Treasury has made the Regulations amending the 2017 Money Laundering Regulations to implement MLD5. The changes also amend key primary legislation, not least to broaden the scope of the “regulated sector”...
Queen’s Speech highlights Brexit free trade hopes
The Queen’s Speech, as expected, highlighted Brexit, noting the priority to deliver it on 31 January, and thereafter to seek a free trade agreement with the EU and other leading global economies. The accompanying...
EU reaches political agreement on crowdfunding measures
The EU Council and Parliament have reached a provisional political agreements on the Commission’s proposal for legislation to boost crowdfunding in the EU. The framework is the 12th of the 13 pieces of the CMU...
ECB looks at privacy in central bank digital currency
ECB has published a paper looking at what is the right balance between privacy in electronic payments and compliance with AML requirements. The paper explores how a central bank digital currency payment system based on...
Tribunal upholds CMC fine
The First-tier Tribunal has upheld a fine the Claims Management Regulator had imposed on a company, in an action taken over now by FCA. The CMR found Hall and Hanley: had sent marketing texts to customers without taking...
FCA fines CMC for misleading communications
FCA has published its first fine since taking over regulation of Claims Management Companies. It has fined Professional Personal Claims Limited £70,000 for misleading customers through its website and printed materials...
FOS consults on plans and budget
FOS has published its consultation on its strategic plans and budget for 2020/2021. Next year, it expects to receive 245,000 complaints and resolve 290,000 (just under half in each case relating to PPI). It expects to...
ESAs publish AML/CFT cooperation guidance
The ESAs have published guidelines for supervisors designed to ensure effective cooperation and information exchanges between supervisors to combat money laundering and terrorist finance. The guidelines include a...