FCA has stopped a Cypriot firm that was operating in the UK under the TPR from conducting any regulated activities in the UK and to close all its trading positions and return money to customers. It found the firm, which...
Author - Emma Radmore
Emma Radmore
FCA fines and bans unapproved adviser
FCA has banned a financial adviser and fined him £68,300. Simon Varley was a director and held the (then) CF10 function at Dickinsons Financial Management Limited. He was also a CF30 customer adviser until 2013, when...
Regulators warn on deposit aggregators
PRA and FCA have written a Dear CEO letter warning firms of the risks associated with the increasing volumes of deposits placed via deposit aggregators. The letter says the regulators do not want to stifle innovation or...
LSB looks at APP scam prevention
LSB has stressed the importance of preventing APP fraud in the first place, rather than just ensuring customers who suffer can be reimbursed – critical though that is. It notes that the increase in online and...
Up next from FCA
FCA’s most recent Policy Development Update promises, by the end of April, only the rates proposals for 2021/22. The other planned consultation, on exit fees in investment platforms, has no scheduled date and will...
FS Bill continues in Lords
The Financial Services Bill is scheduled to continue its Report stage in the House of Lords next week, with some further amendments being tabled.
FCA publishes fin prom data
FCA has published data showing the number of financial promotions that have been amended or withdrawn in the first quarter of 2021. The figures do not include any actions FCA took as a result of unapproved promotions...
FCA speaks on AML controls
Mark Steward has spoken on the importance of “purposeful” AML controls. He headlined: the current prosecution for failings in systems and controls to monitor and scrutinise significant cash deposits, and the...
OFSI updates guidance suite
OFSI has updated its suite of guidance on financial sanctions, including its guidance on monetary penalties, which incorporates some of the lessons OFSI has learned through its case work. The new guidance will apply for...
FCA finalises cancellations and refunds guidance extension
FCA has published its finalised guidance extending its temporary guidance on how it expects firms to act when customers are making claims for cancelled events or travel arrangements. The guidance takes effect from 2...
FCA concerned on Amigo scheme of arrangement
FCA has taken the relatively unusual step of publishing a letter of concerns it lodged in relation to Amigo Loans’ application to implement a Scheme of Arrangement. FCA does not support the scheme for a number of...
FCA tells CMCs and High Cost Lenders to work together on complaints
FCA has received several communications from high cost lenders and CMCs who are not happy with how each other has dealt with complaints brought by consumers against high cost lenders using CMCs. Amongst the...
EIOPA publishes IDD “general good” analysis
EIOPA has analysed Member State rules implementing the IDD and identified some practices that are not in the interests of the general good. For example, it has asked some Member States to adjust their requirements where...
ESMA updates funds FAQs
ESMA has updated its FAQs in respect of the AIFMD and the UCITS Directive, both in respect of performance fees.
FCA confirms DB transfer guidance
FCA has confirmed its finalised guidance on DB transfers for advisers. The guidance does not show many changes from the version on which FCA consulted. It confirms FCA’s view that it is normally in the best...
UK/EU Technical Discussions on MoU concluded
Treasury has announced that the technical discussions on the text of the UK/EU financial services regulatory MoU have concluded. Now the formal steps needed to actually sign up to the MoU can hopefully happen quickly.
FCA responds to Treasury Committee on LCF
Andrew Bailey has responded to the Treasury Committee on aspects of its supervision in respect of the LCF investigation. Key elements of the response looked at: the need for the report to separate accountability with...
FCA feeds back on Open Finance
FCA has published a policy statement following its call for input on Open Finance. The statement looks at how Open Banking is paving the way for more innovation, and notes the large number of regulatory sandbox...
High Court finds company and individual in breach of FSMA
The High Court has delivered a summary judgement after FCA issued proceedings against 24HR Trading Academy Limited and Mohammed Maricar, who ran the firm. It found the firm breached FSMA by providing unauthorised...
Treasury updates high risk jurisdictions list
Treasury has updated its AML advisory notice on high risk jurisdictions. The UK is introducing legislation that will define high risk third countries and will replicate the FATF list, in place of referencing the EU MLD4...
PSR publishes plan and budget
The PSR’s annual plan and budget for 2021/22 focuses on what it can do to improve outcomes by encouraging innovation and competition. It will look at scam prevention and access to cash, and will have a focus on...
EU consults on instant payments
The European Commission has launched a targeted consultation on instant payments. Open until 2 June, the consultation seeks to get technical information from PSPs and providers of technical services, with a view to the...
FCA updates on non-damage BI settlements and deductions
FCA has updated its guidance aimed at insurers who have made deductions from business interruption insurance claim payouts for some types of Government support that policyholders benefited from. Back in August 2020, FCA...
EIOPA publishes IDD FAQs
EIOPA has updated its FAQs on the IDD. The 8 new questions cover: the appropriateness assessment product oversight and governance; adaptation of existing product; protect testing and review for existing products;...
FCA updates on timetable for insurance pricing rules
FCA has updated firms on its plans for the introduction of new rules following its consultation on general insurance pricing practices. It had originally proposed to give firms 4 months from the time it finalised its...
FMLC responds on cryptoasset regulation
FMLC has responded to Treasury’s call for evidence on the regulation of cryptoassets and stablecoins. Unsurprisingly, it notes many legal uncertainties, not least how to identify a “token”, and...
FS Bill amendments for Report stage
Among the amendments to the FS Bill to be discussed at report stage are clauses that: strengthen FCA’s consumer protection objective by requiring it to make rules imposing a duty of care owed by authorised persons...
HMRC publishes AML supervision self-assessment
HMRC has published its assessment of its own performance as AML supervisor. It notes that it currently supervises over 30,000 businesses across the various sectors within its remit. It says its performance is broadly...
EBA consults on AML guideline change
EBA is consulting on changes to its guidance on risk-based supervision for AML/CFT purposes. It plans to include practical step-by-step approaches to help regulators understand some of the aspects of supervision they...
FCA speaks on importance of diversity and inclusion
Nihil Rathi, speaking at Treasury’s Women in Finance Charter Annual review, stressed that diversity and inclusion are regulatory issues. He noted the breadth of characteristics that “diversity”...
PRA confirms holding company fees
PRA has confirmed its position on holding company regulatory fees, and will impose a fee of £2,500 for an application for approval or exemption as a holding company under s192Q FSMA with effect from 19 March.
FCA takes action against NatWest for MLR breaches
FCA has started criminal proceedings against Nat West for breaches of the MLR 2007. It alleges that, over a 5 year period up to late 2016, the bank breached MLR 8(1), 8(3) and 14(1) in relation to funds deposited into...
FCA updates BI list
FCA has updated its information pages on business interruption insurance by providing a list of insurers and policies, submitted by insurers, of the non-damage business interruption insurance policies that are, in...
NCA updates SARs guidance for supervisors
NCA has published an updated version of its guidance to AML supervisors on submitting better quality SARs. It reiterates the importance of: the SAR being clear and concise, explicitly setting out the reason for...
Up next from FCA
FCA’s latest Policy Development update heralds the annual consultation on fees in April, and the proposed consultation on exit fees in investment platforms and comparable firms at some stage this year.
FS Bill finishes Lords Committee stage
The Financial Services Bill has finished its discussions at Committee Stage in the Lords. The next stage, the Report stage, has not yet been announced.
FOS head to step down
Caroline Wayman is to step down as Chief Ombudsman and Chief Executive at FOS. FOS will now start the search for her successor.
IHRP review independent report provided to FCA
John Swift QC, the Independent Reviewer appointed to look at FCA’s regulatory interventions in respect of the sale of of Interest Rate Hedging Products to SMEs. has provided FCA with his draft report. It is...
OFSI updates sanctions penalty guidance
OFSI has published an updated version of its guidance on monetary penalties for breach of financial sanctions, which will apply from 1 April and will apply for all cases where OFSI becomes aware of a potential breach...
FCA consults on minor handbook changes
FCA’s latest quarterly consultation paper proposes: changes to COMP to clarify the application of FSCS; and changes to TC to extend the scope of notification requirements, update the appropriate qualifications...
FS Bill at Committee Stage in Lords – including new FTP offence
The Financial Services Bill is currently going through line by line scrutiny in the Committee stage in the House of Lords. Among the changes for debate are: an requirement for a member of the FCA governing body to have...
FATF publishes RBA guidance
FATF has published guidance for supervisors in applying a risk based approach to supervision of the AML supervised community. It aims to help those supervisors who have traditionally applied rules-based approaches to...
FCA fines and bans trader for market abuse
FCA has fined and banned a former market making trader for market abuse. Adrian Horn, formerly of Stifel Nicolaus Europe Limited executed trades with himself in a series of 129 wash trades in a particular security over...
FCA updates TPR pages
FCA has updated its website to help firms in the TPR understand what is coming next. Among other things, it has started to email firms about their landing slots. It cautions that firms should not apply before their...
FCA publishes “presence of Covid” guidance
FCA has finalised and published its guidance on proving the presence of Covid-19. The guidance builds on the High Court and Supreme Court judgments in the FCA’s business interruption insurance test case, and sets...
EBA publishes ML risk opinion
EBA has published its biennial opinion on the ML and TF risks affecting the EU financial sector. The risks cover those of the whole sector as well as parts of it, and cover risks previously identified as well as new...
Sign up now: what’s new in financial crime prevention 10 March
In a change from the normal, we are hosting the first quarterly update of 2021 for MLROs.com. Sign up here and see you at 9:00 on 10 March.
FCA publishes details of STORs
FCA has published the number of STORs it received in 2020. There was a small dip at the beginning of the pandemic, but the amounts increased as the year went on, peaking at 421 in October, with a total of 3553 for the...
EBA revises guidelines on AML/CFT risk factors
EBA has published updated guidelines on money laundering and terrorist financing risk factors under MLD4. The changes: take account of legislative change; address new risks; strengthen the risk based approach; specify...
LSB sets roadmap for CRM Code review
LSB has published its planned activities for 2021 including updates on the wording of the CRM Bode and a call for input. Separate to its original plans it is already working on a review of the provision on its approach...
Home Office launches Modern Slavery statement registry
The Home Office has updated its guidance page on modern slavery statements following the launch of its new voluntary registry. The registry launched on 23 February, but the page was not active at the time we checked...
FATF publishes plenary outcome
FATF has published the outcome of its February plenary meeting. it approved new guidance on risk-based supervision; it will update its guidance on virtual assets and VASPs; it has agreed new guidance on proliferation...
FCA publishes MiFID 2 product governance review
FCA has published the results of a review that looked at product governance in 8 asset management firms who are manufacturers of products. It examined particularly how the firms take into account the interests of end...
FCA finalises Breathing Space rule changes
FCA has published its final changes to CONC to clarify how its rules apply where the Breathing Space Regulations also apply. Its aim is to avoid any unnecessary duplication of requirements. The Regulations allow ...
Treasury publishes Kalifa Fintech Review
Treasury has published the Kalifa Review of UK Fintech, which launched last summer. The report sets out proposals for the UK to build on its existing strengths in the sector. The review looks at the development...
Treasury and FCA discuss perimeter report
Treasury and FCA have met to discuss the September 2020 report on the regulatory perimeter. Discussions focused on: high risk investments and the potential need to review the current exemptions that allow marketing to...
FSB writes to G20 on 2021 work programme
FSB has published its work programme for 2021, which focuses on: addressing vulnerabilities resulting from the pandemic; increasing the resilience of non-bank financial intermediation; improving efficiency and access in...
ESMA publishes crowdfunding FAQs
ESMA has published its first FAQs on the new crowdfunding Regulation, looking at SPVs and how they can be used in crowfunding models.
FCA appoints new executives
FCA has appointed four new members of its executive team to help drive its transformation: Stephanie Cohen as the COO Jessica Rusu as Chief Data, Information and Intelligence Officer Sarah Pritchard as Executive...
PRA corrects MRT definition
PRA has noted a mistake in the Rulebook definition of “higher paid material risk taker” in Rule 1.3 of the Remuneration Part. The definition currently states that a person will be an HPMRT where: (a) their...
CMA publishes PPI breach letter
CMA has written to Cardif Pinnacle about two breaches of the PPI order. The breaches mean that nearly 5,000 customers have been receiving inaccurate Annual Reviews since 2012, an 4 customers received annual reviews that...
EBA calls for supervisory action to remove account access hurdles
EBA has published an opinion calling on regulators to ensure banks remove any remaining obstacles that are stopping third party providers from accessing payment accounts. It stresses the need for a consistent...
BoE writes to banks on resolvability framework
BoE has written to banks on resolvability assessment framework preparations. The framework set out what banks need to do for the BoE to consider them “resolvable”. Submissions are due in October, and BoE is...
FCA recovers £3.4m for scam victims
FCA has obtained approval from the High Court to return over £3.4m which it has recovered from various accounts relating to two schemes that were unauthorised CIS and deposit-taking schemes, purporting to involve the...
BoE updates on data collection
The Bank of England has published its paper and the way forward for data collection. As more data than ever is created and captured, and expectations on regulators become greater, current systems of collection have been...
FCA finalises vulnerability guidance
FCA has finalised its guidance on its expectations of firms in respect of vulnerable customers. The guidance stresses that FCA expects firms to ensure consumers have the appropriate degree of protection, and that key to...
UK Finance publishes sanctions SI analysis
UK Finance has published a detailed study of the differences between the current UK statutory instruments relating to financial sanctions and their pre-Brexit equivalents. It has conducted a comparison to assess the...
Business Banking Resolution Service goes live
The BBRS, which 7 banking groups have so far signed up to, will work to resolve complaints from larger SMEs. The scheme involves: the contemporary scheme for businesses with turnover of up to £10m per year and a balance...
PRA reports on positive iNED meetings
PRA has written a letter to iNEDs, who participated in its pilot programme of virtual meetings. The meetings discussed current challenges, and PRA was pleased that, in principle: iNEDs thought firms had reacted well to...
BI insurance declarations submitted to Supreme Court
FCA and the other parties to the test case have made submissions to the Supreme Court on the form of declarations. FCA has published a draft of the declarations, showing what is agreed and what is still in dispute...
EIOPA shares views on improving BI cover
EIOPA has published a staff paper on how to improve the insurability of business interruption in the light of pandemics. It is urging insurers to promote prevention measures which will improve society’s capacity...
FCA updates on cancellations and refunds guidance
FCA has updated its webpages and finalised guidance on how it expects credit and debit card and insurance providers to deal with requests for refunds following cancellation of trips, events and holidays as a result of...
PSR consults on better consumer protection
The PSR is calling for views on: how to mandate reimbursing victims of APP scams: It thinks that a combination of requiring banks and building societies to publish their APP scam data, having a standardised approach to...
FCA publishes results of updated Financial Lives research
FCA’s latest survey looking at consumers’ financial situations, products they choose and their experiences of engaging with firms was updated in October to look at how consumers are coping with the pandemic...
PRA speaks on insurer capital
Anna Sweeney has spoken on the Solvency II review and how much capital is enough. She stressed that PRA wants to get its reforms right, and to see them within the context of the entire relevant package of measures. ...
BoE updates on market infrastructure and payment system supervision
BoE has clarified its cooperation with FCA on FMIs and the PSR on payment systems and reiterated the importance of the MOUs it has with them, especially in the light of Brexit.
FCA starts restitution application for DB transfer advice
FCA has started proceedings towards a restitution order against two individuals. It alleges that Estate Matters Financial Limited, which is in liquidation, provided unsuitable DB pension transfer advice, which led...
FCA publishes retail banking portfolio letter
FCA’s portfolio supervision strategy letter for the retail banking sector focuses on the challenges of the pandemic. It notes the critical role of retail banks and is pleased that on the whole the sector has...
Up next from FCA
FCA’s latest Policy Development Update gives very little indication of any imminent papers, promising only the consultation on exit fees in investment platforms and comparable firms, feedback on the SEAR and a...
FCA reports on technology risks and mitigation
FCA has published the results of a multi-firm review that looks at how firms implement technology change and how to deal with problems that result. The review looks particularly at the consequences of the pandemic...
Regulators update on Covid reporting
FCA has updated its guidance on submitting regulatory returns during the pandemic. Firms can now have a 2 month extension to the deadline for submitting their annual report and accounts for submissions due up to 31 July...
ESAs agree PRIIPs KID changes
The ESAs have suggested to the European Commission a package of changes to the PRIIPs KID. The main proposals for change are: new methodologies to calculate appropriate performance scenarios and a revised presentation...
UK Finance reports on “future ready payments”
UK Finance and PWC have produced a report on the opportunities and challenges for the UK payments industry over the next 10 years. The report looks at how the sector should meet its aims of delivering customer benefits...
UK joins International Platform on Sustainable Investment
The UK has signed up to the Joint Statement on the International Platform on Sustainable Finance. It will contribute towards the goals of scaling up the mobilisation of private capital towards environmentally...
FCA gets orders against illegal deposit-takers
FCA has an interim restitution order against 5 of 7 defendants accused of carrying on unauthorised deposit taking by accepting money as deposits for various ventures including crypto-assets, without authorisation.
FCA publishes international firms approach document
FCA has published its new “approach document” setting out how it assesses international firms needing authorisation. The document follows FCA’s September consultation and is aimed at overseas firms...
FCA to contact firms in repeat Covid impact survey
FCA is shortly to send its Covid-19 impact survey to firms it surveyed in Tranche 2 of its original survey last year. Relevant firms will receive an email on 8, 9, 10 or 15 February, and will receive a warm up email a...
Commission asks ESAs for digital finance advice
The European Commission has asked the ESAs for advice on how it is to adapt the prudential and conduct regulatory and supervisory frameworks to take account of digital finance initiatives. The advice should cover:...
Treasury publishes ToR for ring-fencing and proprietary trading review
Treasury has announced the members of the panel for the review into ring-fencing and proprietary trading. It has also published the panel terms of reference. The panel has around a year to report on the impact of ring...
ESMA publishes fund distribution ITS
ESMA has published a report with implementing standards under the Regulation on cross-border fund distribution. The ITS focus on: publication on national regulatory websites of national requirements for marketing of...
ESMA goes on product governance drive
ESMA is launching a “common supervisory action” with national regulators to assess progress manufacturers and distributors of financial products have made in applying key product governance requirements...
Treasury confirms BNPL regulation “as soon as time allows”
Heralding the publication of the Woolard Review, Treasury published its exchange of letters with Chris Woolard confirming the Economic Secretary’s agreement with the recommendation to regulated interest-free BNPL...
ESMA consults on MiFID 2 appropriateness and execution-only
ESMA is consulting on guidelines covering key aspects of the MiFID 2 requirements on appropriateness in non-advised services. The paper looks at how different national regulators have dealt with this – and notes...
Treasury Committee expresses concerns about FOS
The Treasury Committee has expressed concerns about FOS’ budget and effectiveness. It has noted FOS needs around £1,000 to resolve a case on average, and is funding the excess over the case fee through its...
FCA updates on BI issues
FCA has updated its information page on business interruption insurance, and has created new pages containing a policy checker tool and FAQs for policyholders.
CPI 2020 shows mixed results
Transparency International has published the 2020 CPI, which shows that most countries have made little to no progress in tacking corruption over the past 10 years, but also that more than two-thirds score below 50 on...
LSB publishes CRM Code review
The LSB has published its review into the CRM Code for APP scams. The review of the voluntary code looked to see how effective it has been in providing greater consumer protection, and to see whether it has had an...
UK and Switzerland in talks on better FS cooperation
The UK and Switzerland are planning a comprehensive mutual recognition agreement in relation to financial services. The plan is for it to cover insurance, banking, asset management, capital markets and market...
BI insurance claims – what happens next?
Following our report on the Supreme Court’s findings in the FCA’s test case, we have now written an article on the key elements of the judgment.
FCA consults on changes to SCA-RTS and payment services perimeter guidance
FCA is consulting on: changes to the RTS on SCA. Key changes will include: a new exemption from SCA when customers access their information through an AISP; mandating the use of APIs by ASPSPs to faciliate TPP access to...