FIN.

Author - Emma Radmore

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 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...

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...

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...

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...

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...

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...

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...

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...

Government responds on financial exclusion

The Government has published its response to the Lords Liaison Committee report on tackling financial exclusion. Key elements of the response consider: access to cash: the response notes that the FS Act 2021 will allow...

PRA updates on Solvency II QIS

PRA is to launch its Quantitative Information Survey on Solvency II during the summer.  The QIS will cover the calculation of the matching adjustment, risk margin and the transitional measure on technical provisions. ...

Taskforce reports on regulatory reform

The Taskforce on Innovation, Growth and Regulatory Reform has provided its report on reshaping regulation in the UK to the Prime Minister. The report calls for: a common law approach proportionality in application...

ECB consults on “fit and proper”

ECB has issued a consultation draft of its requirements when assessing members of management boards and those holding key functions within regulated institutions as “fit and proper”. It asks for comment by ...

Sam Woods reappointed

Sam Woods has been reappointed as Deputy Governor of the BoE with responsibility for Prudential Regulation and Chief Executive of the PRA. His second 5 year term will last until June 2026.

PRA updates on TPR timetable

PRA has updated on authorisations under the TPR.  It has reminded that it has up to the end of 2023 to process applications from firms falling under it. Currently, it is seeing a high volume of applications of varying...

Up next from FCA

FCA’s latest Policy Development Update highlights: a policy statement in July on regulation of funeral plans, and consultation on resolution and FSCS protection rules for the funeral plans sector consultations on...

FCA takes 13 firms into new sandbox cohort

FCA has accepted 13 firms into cohort 7 of the regulatory sandbox. It received 58 applications, mainly from firms in the retail investment and retail lending sectors. FCA was interested in proposals that saw more...

FS Act 2021 starts to come into force

The first commencement order for the FS Act 2021 bring into force: on 9 June, sections 3-5 and Schedule 3 on prudential regulation of credit institutions by PRA on 26 June, section 7 and part of Schedule 4 on amendments...

UK takes over G7 presidency

The International Regulatory Strategy Group has published a paper on the financial services priorities for the UK’s G7 Presidency.  The UK took over the Presidency in January and the IRSG now says it should focus...

EBA and ESMA update on IFR permitted funds

EBA and ESMA have published a provisional list of additional instruments and funds that some of the smallest investment firms may use as own funds under the IFR. The list is designed to help firms in advance of the IFR...

Market Watch looks at use of orderbook data

The latest edition of Market Watch explains how FCA uses orderbook data to help conduct surveillance to identify suspected market manipulation.  It uses its own data combined the STORs and other notifications it...

Pensions Dashboard call for input

The Pensions Dashboards Programme has called for input on plans for the staged compulsory connection of pension providers to the new ecosystem. The DWP, FCA and TPR have been involved in developing the proposals, which...

ESMA finalises marketing guidelines

ESMA has clarified its guidelines on standards for fund marketing. Following its consultation, the guidelines detail how all marketing communications should: be identifiable as such; describe the risks and rewards of...

ESMA calls for evidence on digital finance

ESMA has launched a call for evidence which aims to gather information on various issues relating to digital finance. It is particularly seeking to understand: more fragmented or non-integrated value chains, which arise...

FCA intervenes on high risk CFDs

FCA has stopped ICC Intercertus, a Cypriot firm operating under the TPR, from conducting any regulated or marketing activities in the UK. The firm’s wider group traded as “EverFX” and used the...

FCA confirms role in RLS

FCA has confirmed its approach to regulating firms in relation to the Government Recovery Loan Scheme that was launched by the British Business Bank on 6 April to replace the BBLs and CBILS which are now closed to new...

PRA speaks on Cyber Risk

Lyndon Nelson has spoken about the steps PRA takes to counter cyber risk. He described how PRA has looked at operational resilience in the context of cyber risk by testing, capabilities and coordination. It has carried...

PRA updates on MRTs

PRA has published an update on the requirements applicable to material risk takers.  The EU did not adopt an updated version of the MRT Regulation before the transposition date of CRD V, and so PRA is currently using...

FCA orders firm to terminate AR agreements

FCA has published a first supervisory notice to Marshall Sterling Investment Management Limited, requiring it to terminate its relationships with 2 appointed representative firms within 14 days of the notice, and with a...

No timescale on BNPL

In answer to a question in Parliament, the Government confirmed its intention is still to bring forward secondary legislation to bring forward currently unregulated BNPL products “when Parliamentary time...

PRA publishes results of 2020 feedback survey

PRA has published the results of its 2020 firm feedback survey. The survey asked questions aiming to understand whether firms consider that PRA understands the firm and its business and the it has appropriate access to...

PSR consults on CoP for all

The PSR has issued a call for views on whether it should direct additional banks, building societies and financial institutions to offer Confirmation of Payee.  Currently only the 6 biggest banking groups offer it.  The...

Rebranded BSB updates website

The former Banking Standards Board has been rebranded as the Financial Services Culture Board from May 2021. It is now open to all financial services firms operating in the UK

FCA writes to CEOs of EMIs on client money

FCA has written a Dear CEO letter asking e-money firms to write to their customers to explain how their money is protected. It is worried that these firms’ promotions to customers give the impression that their...

IAIS consults on AML guidance

IAIS is consulting on changes to its “application paper” on AML and CFT in the insurance industry. The paper was originally published in 2013, and IAIS has revised it in light of various FATF updates and...

SFO publishes business plan

SFO’s business plan for 2021/22 includes nothing of great surprise. Its main priorities remain: investigating and prosecuting the most complex cases of fraud, bribery and corruption; delivering justice, upholding...

Dormant Assets Bill introduced in Lords

The Dormant Assets Bill has been introduced into the House of Lords and has had its first reading.  The Bill proposes expansions to the current scheme to include not only bank and building society assets, but also long...

FSCS confirms 2021/22 levy forecast

FSCS has confirmed its levy forecast for 2021/22 at £833m.  This is slightly lower than the indicative levy announced in January, partly because extensions of government support are likely to mean some firms will...

FCA and PSR make statement on access to cash

A joint statement from FCA and PSR stresses that although there has been an overall decline in use of cash, withdrawals have started again as restrictions ease, and there must remain access to cash and banking services...

Up next from FCA

The latest Policy Development Update from FCA heralds: a consultation on a new ESG sourcebook for enhancing climate-related disclosure requirements, coming in June; and a consultation on exit fees in investment...

EBA consults on AML/CTF database

EBA has published for consultation draft RTS on a central AML/CTF database. The idea is for the database to contain details of weaknesses in systems and controls within individual firms identified by their national...

Treasury updates on economic crime plan

Treasury has updated on the Government’s progress on its Economic Crime Plan. It is pleased to see an improved understanding of the threats to the economy and the moves that have been made to address...

FCA publishes H2 2020 complaints data

FCA’s most recent complaints data report shows: a significant drop in complaints over the H1 2020 figure; a large decrease in insurance and pure protection complaints – with the largest being in PPI...