PRA has varied Sonali Bank’s permission so that it no longer has permission to accept deposits. The decision, published in a second supervisory notice, states that the firm is failing to meet the threshold...
Author - Emma Radmore
Emma Radmore
JMLSG updates Motor Finance guidance
JMLSG has published revisions to its sectoral guidance on Motor Finance. It has submitted the new guidance to Treasury for approval. The additions to the existing guidance comprise of an FLA industry standard annex...
Companies House writes to overseas entities on register entries
Companies House has written to overseas entities who already own or leave property or land in the UK and who must register information with Companies House by the end of January 2023. Any entity that does not comply can...
FCA updates CiC requirements for crypto controllers
FCA has updated its change in control pages on its website to reflect new forms for controllers of registered cryptoasset firms. From today (11 August), any person deciding to acquire 25% of more control of a registered...
Treasury Committee publishes BoE views on FSM Bill
The Treasury Committee has published a letter received from Andrew Bailey about the FSM Bill, in which the BoE welcomes the Future Regulatory Framework measures set out in the Bill, and supports the proposals for...
TheCityUK publishes manifesto for next PM
TheCityUK has set out 8 areas where the industry can work with the next Prime Minister, not least: delivering n the FSM Bill as soon as possible and reforming Solvency II creating tax incentives to accelerate financing...
GFANZ consults on net-zero portfolio guidance
The Glasgow Financial Alliance for Net Zero has published for consultation the GFANZ Portfolio Alignment Measurement Report to give additional guidance for financial institutions on implementing and selecting portfolio...
FMLC reports on RAO “similar contracts of guarantee”
The Financial Markets Law Committee has published a report looking at the wording in the RAO which extends the meaning of the term “contracts of insurance” also to include arrangements which the FMLC says...
UK Finance supports “simpler-regime”
UK Finance has responded to PRA’s consultation paper on its proposed definition of a simpler-regime firm. It supports the principle, but has suggested it would be appropriate to increase the ceiling below which...
UKJT consults on legal statement for digital securities
The UK Jurisdiction Task force is looking at the way in which English law can support the issue and transfer of equity or debt securities on blockchain and DLT systems. The statement will follow its work over recent...
FCA publishes “alternatives” supervisory letter
FCA has published its supervisory strategy letter for “alternatives” – that is firms that are predominantly active in the alternative investment sector. Although the letter, as usual, is addressed to...
PRA makes new rules
PRA has made changes to its rules, supervisory statements, statements of policy and technical standards following its Occasional consultation 3/22. The changes affect: Solvency II firms: in respect of the Statement of...
NCA and OFSI issue Russian sanction enablers alert
NCI and OFSI have issued a “red alert” sharing information on some of the common techniques that Designated Persons under Russian sanctions and their UK enablers are suspected to be using to evade sanctions...
FCA fines former NED for inside information disclosure
FCA has fined Sir Christopher Gent, former NED of ConvaTec Group, £80,000 for disclosing inside information to individuals in senior positions in two of the company’s major shareholders in advance of its...
FCA publishes Q1 whistleblowing figures
FCA has published data on the number of whistleblower reports it received in Q1 of 2022. It received 276 new reports containing 540 allegations, almost half through the online reporting form. The reports usually relate...
FCA confirms new AR rules
FCA has confirmed its new rules to make principal firms more responsible for their ARs. The package of rules, which will take effect from 8 December, will: require principals to notify FCA of future AR appointments 30...
FCA publishes 2022 “Dear Remco Chair” letter
FCA has updated its materials on SYSC 19D to include its “Dear Remuneration Chair” letter for 2022, which sets out its expectations as the Remuneration Committees determine the year’s remuneration...
FCA updates on mortgage switching
FCA is pleased that the number of borrowers who could save money by switching mortgages is now around 370,000, down from 800,000 in 2016. However, it urges borrowers to consider their mortgages, given the rising costs...
FCA consults on transfer advice redress
FCA is consulting on updates to how it calculates redress for unsuitable DB pension transfer advice. The consultation: confirms that FCA has carried out a review that shows that the current methodology is appropriate...
FCA finalises high-risk fin prom rules
FCA has published its policy statement with final rules on firms that are publishing promotions of high-risk products. The new rules will require firms that are issuing and approving the materials to have appropriate...
Court refuses judicial review on FOS mortgage rate decision
The High Court has found in favour of FOS in an application by a mortgage lender for judicial review of FOS’ decision on a complaint about mortgage interest rates. Mrs D had taken out a 10 year interest only...
FCA says applicants must prove ability to comply with Consumer Duty
FCA has updated its website in relation to applications for authorisation in light of its publication of the final rules on the Consumer Duty. It now says that it expects all applicants for authorisation or VOPs to be...
FCA publishes Carillion decision notices
FCA has published its decision notices in respect of Carillion plc and three of its former executive directors. As the company is in liquidation, FCA has imposed a public censure, which has not been appealed. However...
Law Commission consults on crypto
The Law Commission has published a paper setting out its proposals for reform of the laws relating to digital assets. It has identified many areas of law that need reform in order to recognise and protect the rights of...
Ombudsman News highlights gambling complaints
The latest edition of Ombudsman News from FOS highlights: the recent appointment of a new Deputy Chief Ombudsman and COO, both of whom will take up their roles by October; and FOS’ new guidance on the treatment of...
UK-U.S. Working Group meets
UK and U.S. participants held the 6th meeting of the UK-U.S. Financial Regulatory Working Group online on the 21st of July 2022, with present officials including senior staff from HM Treasury and the U.S. Department of...
Need more detail on the Financial Services and Markets Bill?
We’ve produced a detailed summary of the key aspects of the Financial Services and Markets Bill, following up on our headline post. While the Bill won’t be having its second reading until September, keep an...
CMA orders bank to send transaction histories
The CMA has ordered Monzo to send transaction histories for 13,000 customers who closed their accounts with the bank but were not sent the history required by the Retail Banking Market Investigation Order. The breaches...
Overseas Entities Registration Regulations made
The Register of Overseas Entities (Delivery, Protection and Trust Services) Regulations 2022 were made on 25 July. They specifically: cater for electronic delivery of documents required; list circumstances in which the...
Court confirms no statutory trust for unsafeguarded EMR/PSR assets
The Insolvency and Companies Court has given directions at the request of the liquidators of Allied Wallets Limited, a failed payment services firm, which was subject to the PSRs in respect of electronic payment...
FCA publishes fin proms data
FCA has published its quarterly data for the quarter ending June 2022 on its actions against firms that breach financial promotions restrictions and requirements. Key statistics include: review of 451 promotions...
PRA consults on O-SII approach
PRA is consulting on changes to its approach to identifying other systemically important institutions It currently carries out its assessments following the EBA methodology but feels Brexit gives an opportunity to...
MLR amendments made
The Money Laundering and Terrorist Financing (Amendment)(No 2) Regulations 2022 were made on 21 July. The changes implement Treasury’s conclusions following its consultation and will mainly take effect from 1...
European Scrutiny Committee reports on EU law
The European Scrutiny Committee has reported that the principle of the supremacy of EU law is incongruous with the UK’s legal framework and should be scrapped. As the law currently stands, the retained EU laws...
FATF looks at DP, technology and private sector information sharing
FATF has published a report looking at how collaborative analysis and ways of bringing data together can help financial institutions to build a clearer picture of the large and complex puzzle of transactions of which...
Treasury publishes “state of the sector” report
Treasury, with the City of London Corporation, has published the first annual review of UK financial services. The report looks at the successes of the financial sector, not least as an international hub, at the...
Treasury consults on payments systems regulation
Treasury is consulting on payments regulation and the systemic perimeter. The paper looks at how BoE currently applies the regulatory perimeter over payment systems and how it should approach reform. It also looks at:...
Regulators propose measures for CTP service resilience
BoE, FCA and PRA have proposed measures to oversee and strengthen resilience of services that critical third parties provide to the financial sector. The discussion paper follows previous reports and consultations, and...
New Financial Services and Markets Bill in Parliament
The Government has introduced the Financial Services and Markets Bill into Parliament. The Bill was introduced on 20 July and had its first reading, but no date was set for the second reading. In his first Mansion House...
ESMA updates fund marketing questions
ESMA has updated its FAQs on the AIFMD and UCITS Directive: on the AIFMD, the most interesting new question seeks clarification on who is responsible for compliance with the marketing provisions in the AIFMD when an AIF...
PSR annual report focuses on “protecting people”
On the 19th July the PSR released its annual report for 2021/2022, and outlined how it has helped the public in the past year. During the year, the PSR: imposed its biggest ever fine (for cartel behaviour in the prepaid...
FCA publishes Annual Report
FCA has published its Annual Report and supporting papers. It highlighted: how nearly 600,000 people are paying less in interest and charges on credit card debt following rule changes; how further rule changes have...
Complaints Commissioner publishes Annual Report
In this year’s report by the Complaints Commissioner dealing with complaints against the Financial Services Regulators, Amerdeep Somal outlines what her office dealt with, and how it compared to last year. 935...
FCA fines failed firm for financial crime failings
FCA has fined the TJM Partnership, which is now in liquidation, £2,038,700 for financial crime compliance failings in cum-ex trading business. This is the third fine in this area, and the largest. FCA found the firm...
Gibraltar added to High Risk Third Countries from 11 July
The latest Government advisory on High Risk Third Countries has added Gibraltar to the list with effect from 11 July, and removed Malta. The UK list continues to mirror the FATF list. The full list is now Albania...
FCA updates on change in control delays
FCA is still suffering significant delays in allocating case officers for CiC notifications. It has recruited more staff but there is still around 6 weeks between submission of an application and allocation to a case...
FCA agrees end to unauthorised deposit taker case
FCA started court proceedings in December 2019 against Bright Management Solution Limited, which it alleged was operating an unauthorised deposit taking scheme. The matter was due to come to trial this month, but a...
UK sanctions more Russian oligarchs
New sanctions under the Russian regime designate more individuals within Vladimir Putin’s inner circle, including Russia’s second richest man, and a relation to Putin’s who is president of a large...
OFSI fines company for employee flight sanctions breach
OFSI has updated its table of monetary penalties for sanctions breaches. The table now reflects a fine on Tracerco Limited, a company operating in the energy sector, which has been fined £15,000 for making funds...
FCA Portfolio Strategy letter for lifetime mortgage providers
FCA has published its Dear CEO letter for the lifetime mortgage provider sector. Its last letter was in October 2020. The latest letter: highlights (as other sectoral letters have done) the impact on vulnerable...
FCA publishes portfolio letter to debt advice firms
FCA has published its Dear CEO letter to the debt advice portfolio, updating its letter of 2020. Most of the messages are similar to those it has given to the mainstream consumer credit lenders, specifically the focus...
FCA fines Ghana International Bank for correspondent banking DD failings
FCA has fined Ghana International Bank nearly £6m for failings in its financial crime prevention controls in respect of its correspondent banking business. It found that, for a 5 year period to the end of 2016, it did...
FCA fines JLT for more bribery control failings
FCA has levied a second fine on insurance broker JLT Speciality Ltd for financial crime control failings. The £7,881,700 fine follows a previous fine of nearly £2m in December 2013 for similar failings. Following...
Outcomes of FATF plenary
The latest FATF Plenary meeting took place from 14-17 June. At it, FATF agreed to severely limit the role of Russia and its influence in FATF; approved a report to help the real estate sector better detect and prevent...
Treasury confirms BNPL proposals
Treasury has published its consultation response to its plans for regulating the buy-now-pay-later credit market. It has confirmed that: lenders offering BNPL will need to be authorised by FCA; lenders will need to...
FCA to delay PEMC review
FCA was due to carry out its post-implementation review of its requirements to help customers with serious pre-existing medical conditions to get travel insurance and report by October. It has decided to delay its...
FPC withdraws mortgage affordability test
FPC has confirmed that it will withdraw its Recommendation on mortgage affordability with effect from 1 August. The current test specifies a stress interest rate for lenders when assessing borrowers’ ability to...
Treasury Committee to question OFSI on sanctions effectiveness
The Treasury Committee is to question OFSI as part of its inquiry into effective economic sanctions on Russia. The session will take place on 22 June and is likely to include discussion on the challenges of implementing...
NCA updates SAR Glossary codes
NCA has published updated guidance on SAR Glossary Codes and Reporting Routes. The booklet follows the familiar form, providing: a checklist aimed at establishing whether the circumstances require immediate attention...
FCA to authorise largest funeral plan providers
FCA has published a list of 24 of the largest funeral plan providers who it intends to authorise with effect from 29 July, when funeral plan regulation takes effect. It is still considering applications from a number...
Treasury Committee reports on future of financial services regulation
The Treasury Committee has warned the Government that, in looking at the opportunities for regulatory reform and considering what it can offer, it must take care to ensure that competitiveness does not become the...
Treasury feeds back on MLR changes
Treasury has published the feedback on its consultation from last summer on amendments to the MLRs. It has now analysed the responses to the consultation, made the legislative changes, and most of the changes will take...
EBA publishes MLRO role guidelines
EBA has published its final guidelines on the role and responsibilities of the officer in charge of compliance with AML and CTF and of the management body of credit and financial institutions. As ever, the Guidelines...
Parliament launches post-Brexit regulatory divergence inquiry
The European Scrutiny Committee has launched an inquiry looking at the benefits and challenges to business and the UK economy of diverging from EU regulation that was copied into UK law post-Brexit. Financial services...
FATF publishes UK follow up report
FATF has carried out its latest assessment of the UK’s compliance with its Recommendations, following the 2018 report. FATF says the report from the UK on the actions taken since the last evaluation has enabled it...
Court finds introducer in breach of FSMA but allows commission to stand
Kinled Investments Limited introduced an investor to Zopa Group Limited. Kinled claimed a £4.2m fee from Zopa for its intermediary work when the investor made a second investment, while Zopa counterclaimed £345,000 as...
Court looks at meaning of “insurance”
A court has considered whether a law firm that offered an indemnity against adverse court orders when acting for claimants on a conditional fee basis was in fact carrying on insurance business. The defendant firm of...
ESMA speaks on retail funds
Verena Ross of ESMA has spoken on the priorities for EU retail fund investors. She focussed on: the PRIIPs review: she acknowledged that change is needed, particularly on the presentation of performance information, and...
Government consults on failure of Digital Settlement Asset firms
The Government is consulting on proposed amendments to the FMI Special Administration Regime to enable the management of a failure of a “systemic digital settlement asset firm” – including stablecoin...
FCA sets up BSPS information page
FCA has published a new page on its website in which it gives answers to requests for further clarification that it has received from respondents to its consultation on the British Steel Pension Scheme redress scheme...
FRC disciplines KPMG and Partner over Rolls Royce audit
The Financial Reporting Council has issued its final decision notice after its investigation into KPMG Audit plc and the Audit Engagement Partner, Anthony Sykes, in respect of the statutory audit of Rolls-Royce Group...
High Court approves Amigo scheme of arrangement
The High Court has approved the scheme of arrangement that will provide redress for customers who were mis-sold loans by Amigo and who have raised a complaint. FCA has reiterated that the scheme is an improvement on the...
Paypal withdraws from FOS voluntary jurisdiction
PayPal (Europe) S.a.r.l et Cie, SCA is withdrawing from FOS’ voluntary jurisdiction from 1 December 2022. The company became subject to the compulsory jurisdiction after Brexit when it joined the TPR. But the...
Government takes action to protect access to cash
The Government has announced new legislation that will protect access to cash. It will introduce measures in the forthcoming Financial Services and Markets Bill which will give FCA power to require the largest banks...
FCA speeds up “use it or lose it” powers
FCA has confirmed new rules that will make it easier for it to cancel permissions that firms are not using. Following a change in the law in the FS Act 2021 that allows it to streamline and shorten the process, FCA will...
Mastercard refused leave to appeal on “date of domicile”
The Competition Appeal Tribunal has refused Mastercard leave to appeal on the issue of what the “domicile date” should be in the Collective Proceedings Order granted in the collective action brought by...
FCA asks for reports of sanctions evasions
A new page on the FCA website asks for reports of sanctions evasion by firms on any of FCA’s registered or by companies with UK listed securities. The new page gives details of how: individuals can report as...
ESMA consults on fund marketing notifications
ESMA is consulting on the information and form of templates for making notifications of cross-border management and marketing activities for UCITS and AIFs within the EU. It has drafted RTS and ITS for comment and...
FCA speaks on importance of insurance brokers
Sheldon Mills has spoken to insurance brokers of the important role they play and how FCA is looking to regulate them proportionately. Statistics show that 67% of general insurance business and 81% of commercial...
FCA launches latest “scam smart” campaign
FCA has launched its latest “scam smart” campaign with case studies on increasingly sophisticated scams including those involving screen sharing which enabled scammers to take £48,000 from a consumer’s...
PRA launches biennial insurance stress test
PRA has launched its biennial stress test for life and general insurers. It has sent the test to the largest firms and has asked for submissions by 28 September, and is hosting a seminar on 11 May with a Q&A...
European Commission calls for views on consumer participation in capital markets
The European Commission has opened a call for evidence on a proposed Regulation to improve market outcomes and increase consumer participation in capital markets. The consultation period is short, lasting only until...
ESAs propose PRIIPs KID changes
The ESAs have published their technical advice to the European Commission on making the PRIIPs Key Information Document more user friendly, The advice recommends several changes and encourages the Commission to...
Treasury Committee publishes response to fraud, scams and economic crime report
The Treasury Committee has published responses from the Government, FCA and PSR to its report on economic crime. The key message is that the Government is creating a second Economic Crime Plan which it will publish...
FCA confirms no change to payment account linked services list
FCA has completed its review of the list of linked services list for the purposes of the Payment Account Regulations, and has decided not to make any changes.
FCA uses emergency powers on BSPS advisers
FCA has made rules using its emergency powers to prevent firms taking steps to dispose of their assets to avoid paying compensation in relation to BSPS pension transfer advice. It says it is introducing the rules...
FCA calls on challenger banks to improve financial crime controls
FCA has published a thematic review on how challenger banks assess financial crime risk, and has highlighted significant failings. Among the findings of the review, which it carried out during 2021, focussing on banks...
Post-Trade Task Force publishes report
The industry led Post-Trade Task Force has published its report on the future of post-trade. Its work will now be taken forward by the FICC Markets Standards Board (FMSB). The report looks at key challenges which it...
FCA updates FUND disclosure form
FCA has published an updated version of the disclosure checklist required for AIFMs under the FUND requirements.
FCA stops further pension adviser from disposing of assets
FCA has imposed a requirement preventing David Stock & Co Limited, a firm which advised on BSPS transfers, from disposing of assets without FCA’s permission. FCA had noted to all relevant firms that they...
FATF reports on effectiveness and compliance with FATF standards
FATF has published a report based on data from mutual evaluation reports since 2013, which finds that overall countries have made huge progress. Many have enacted a range of laws and regulations, with 76% of countries...
CMA updates on retail banking market investigation
The latest updates to CMA’s information page show correspondence between the OBIE and CMA on the status of the roadmap. The OBIE updated CMA on progress and items that require updating, and CMA welcomed the update...
Court finds mortgage loan not “by way of business”
The High Court has handed down its judgment in the case of Arthistory Ltd and Mr and Mrs Campbell. The Campbells own a property and had granted an option to Arthistory (the Claimant) to acquire it. The Claimant sought...
FCA to remove credit broker permissions
FCA has published its first supervisory notice against Semantic Business Services Ltd, a secondary credit broker. It plans to remove the firm’s permissions because: the firm has links with a number of other firms...
FCA publishes thematic review on wind-down planning
FCA has published its thematic review looking at wind-down planning across different business models, with a focus on liquidity needs during wind-down, intra-group dependencies and wind-down triggers. It has reiterated...
FCA confirms non-opposition to Amigo scheme
FCA has written to Amigo Loans to confirm it will not be attending the hearings to oppose its proposals for its Scheme of Arrangement. FCA has previously said the new proposal is an improvement on the failed proposal of...
FCA sets out strategy to improve outcomes
FCA has published its Business Plan with its new 3 year strategy aimed at preventing serious harm, setting higher standards and promoting competition. Among the measures it is taking is the creation of 80 new roles to...
PSR updates on competition in pre-paid cards sector
The PSR has publishes the non-confidential version of its decision following its investigation into two cartels in the pre-paid cards market. In January it confirmed its fines totalling around £33m on Mastercard...
FCA boosts authorisation capability
FCA has appointed Laura Dawes and Dominic Cashman as Directors of Authorisations, starting from late April/early May. It will also appoint a new Finance Director, Craig Chapman. The appointments come as FCA commits to a...
FCA talks of a “digital regulator”
Jessica Rusu, FCA’s Chief Data, Information and Intelligence Officer, has spoken on how FCA is building its digital regulatory future. Its work will focus on fostering innovation, being intelligence led and...
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