The SFO has published a chapter from its handbook that gives guidance on how it approaches DPAs and engages with companies when it is considering a DPA. The guidance, which is internal guidance for SFO staff and...
Author - Emma Radmore
Emma Radmore
FCA confirms new rules
FCA has issued a Handbook Notice summarising rule changes finalised over recent months. Key among them are: the new section on COBS (22.6) to ban derivatives and ETNs that reference certain cryptoassets to be marketed...
Treasury Committee launches new Economic Crime inquiry
The Treasury Committee has launched a new inquiry to look at what progress has been made in combatting economic crime, building on previous recent inquiries, It will focus on: AML systems and the sanctions regime...
FCA and PRA fine GSI for 1MDB risk management failures
FCA and PRA have fined Goldman Sachs International a total of £96.1m for risk management failures connected to its role in three fund raising transactions for 1Malaysia Development Berhad, a Malaysian state-owned...
Commission consults on AIFMD review
The European Commission has launched a consultation on its review of the AIFMD. The consultation is open until 29 January 2021. The Commission wants to gather views from AIFMs, distributors, industry representatives...
Financial Services Bill starts Parliamentary passage
The Financial Services Bill was introduced into Parliament on 21 October. The key aims of the Bill are: to implement the remaining Basel 3 standards; to create a more proportionate investment firms’ prudential...
MLR Bank Account Portal not yet ready
FCA has confirmed that the Bank Account Portal, which is being set up under the MLRs to enable credit institutions and providers of safe custody services to respond to requests for information from a law enforcement...
FCA says no more excuses for complaint handling delays
FCA says firms have now had enough time to embed the new ways of working the pandemic has demanded, and that any more failures to comply with FCA’s complaint handling requirements should only arise in exceptional...
Crowdfunding Regulation in OJEU
The EU Regulation on Crowdfunding and the accompanying amendments to MiFID 2 have been published in the Official Journal. It will apply from 10 November 2021. Please ask us if you’d like to see the articles...
FCA looks at banking data for understanding consumer wellbeing
FCA has published an occasional paper in which it looks better to understand consumer financial wellbeing through looking at responses to surveys, analysing banking data and considering objective factors most closely...
Commission publishes EU work programme 2021
The European Commission has announced its focus for 2021. As well as continuing to work on managing the effects of the pandemic, its priorities will include: a “Fit for 55” packages to reduce emissions by...
HMRC publishes MLR risk assessment guidance
HMRC has published risk assessment information to help businesses carry out the money laundering and terrorist financing risk assessment required under the MLRs. There are separate documents for each of: money services...
EBA consults on PSD2 major incident reporting
EBA is consulting on a proposed revision of its guidelines on major incident reporting under PSD2. It wants to make the process better, simpler and more streamlined, and reduce the number of operational incidents that...
FCA fines for short selling disclosure breach
FCA has issued its first fine for breach of the Short Selling Regulation. It fined Asia Research and Capital Management Limited, an asset management firm based in Hong Kong, nearly £875,000 for failing to notify FCA and...
SFO looks to future challenges
Lisa Osofsky has spoken on future challenges in economic crime. She focused on: the success of the National Economic Crime Centre in its first 2 years of existence; the refreshed Economic Crime Plan; better engagement...
FCA speaks on market abuse in the time of COVID-19
Julia Hoggett has spoken on the importance of regulators maintaining focus on ensuring markets work well for consumers and are orderly and clean, whatever the challenges. She spoke about how FCA aims to place the...
OFSI publishes annual review
OFSI has published its annual review for the year to March 2020. The review highlights: OFSI’s work to prepare for the end of the transition period; its work on reported breaches and how it decides on the...
FCA updates on pre-existing conditions directory
FCA has noted the new travel insurance directory launched by MaPS for people with serious pre-existing medical conditions. The directory meets FCA’s criteria for a “Medical Cover Firm Directory” and...
FPC updates on stability risks
The FPC has concluded that Covid-19 continues to put strain on households and businesses, but that banks are strong enough to keep supporting them as a result of the actions to strengthen the system taken after the 2008...
FCA skilled persons reports update
In July – September 2020, FCA commissioned 14 skilled persons reports – of which half were on the retail side and half the wholesale side. 3 related to retail banking and payments and 2 to retail lending...
FCA bans retail sales of crypto-derivatives
FCA has published final rules to ban the sale to retail customers of derivatives and ETNs that reference certain types of crypto-assets. The new rules define “unregulated transferable cryptoassets” as...
EP approves crowdfunding proposals
The European Parliament has approved, in plenary, the proposal for EU-wide regulation of crowdfunding services and platforms. Given that the Council’s position was approved unamended, the text was deemed adopted...
FCA opens 2 sandbox windows
FCA has opened two new application windows in its Sandbox – applications for Cohort 7 of the now established regulatory sandbox, and the pilot of a new Digital Sandbox. The emphasis is on firms providing products...
FCA delays SEAR response date
FCA has updated its list of activities that have been delayed, or have changed deadlines. It has delayed the response date for its paper on the introduction of the SEAR to 15 December (from 1 October). It has still not...
FGC updated for MLR changes
The Financial Crime Guide has been updated to reflect necessary changes consequent on implementation of MLD5. In particular, it now covers new high-risk factor considerations; changed e-money thresholds for CDD; updated...
Up next from FCA
FCA’s latest Policy Development Update promises, by the end of the calendar year: consultation on amendments to CONC and MCOB to accommodate the Breathing Space Regulations consultation on the new regulatory...
OFSI publishes quarterly TAFA report
OFSI has published its quarterly report on the operation of TAFA, covering the quarter to end March 2020. At the end of the quarter, just over £100,000 were frozen, but mainly relating to the EU Al-Qaida Regulation...
FCA updates Handbook for end of transition
FCA has published an updated version of its Handbook to reflect the rules that will apply at the end of the Brexit transition period, and explained how it will use its Temporary Transitional Power. Broadly, FCA plans to...
EU updates on AML initiatives
Valdis Dombrovskis has spoken on financial crime prevention and, in particular on the AML action plan. He is pleased at the support the plan received, and the overwhelming agreement that no action is not an option. They...
FCA extends 10% depreciation guidance
FCA is giving a further 6 month extension to its measures on 10% depreciation notifications. Its first set of measures expire on 30 September, and it is extending them such that it will not take action for breach of...
FCA writes to investment and insurance CEOs on client assets and Covid-19
FCA has written 2 Dear CEO letters to firms that hold client money or custody assets, whether in the context of investment or insurance business, to remind them of their obligations under CASS. The letters stress that...
FCA updates on Brexit preparations
FCA has urged firms to make sure they have considered how the end of the transition period will impact them and their customers. It has updated its webpage to include stressing that firms with any client money or...
FCA reopens TPR window and tells fund managers to update
FCA has reopened the TPR window for EEA firms and fund managers that have not previously done so to make notifications if they wish to use the regime. The window will close on 30 December. Fund managers are also able...
FCA reports on regulatory perimeter
FCA has published its second report on the regulatory perimeter. The report looks at: consumer confusion about the perimeter – and when FCA has the power to act. It also notes that customers may be confused as to...
ESMA publishes draft third country RTS
ESMA has published draft RTS and ITS for third country investment firms under MiFID 2/MiFIR. It needed to make changes following the IFR and IFD, which requires information to go to ESMA even where the third-country...
FCA updates on new COVID-19 issues
FCA has updated firms following the most recent Government announcement on COVID-19 restrictions. It says firms should continue to follow Government advice to work from home, and has updated its statements on...
EU proposes crypto-asset market Regulation
The EU has published a proposal for a Regulation on markets in crypto-assets, as part of its Digital Finance package. The proposal notes many Member States have legislated on issues relating to crypto-assets which has...
First firms to move to RegData
FCA has announced the first firms will be moved across from Gabriel to its new data collection platform, RegData, over the weekend of 17-18 October. There will be 52,000 firms moving, and they will all receive 3...
Treasury Committee seeks economic crime answers
The Treasury Committee has written to BEIS, FCA, HMRC and the Minister for Security seeking answer to a number of questions in the light of the release of the FinCEN papers. Mel Stride’s letter asks: what needs...
FCA consults on international firm regulation
FCA is consulting on its approach to authorisation and supervision of international firms operating in the UK. The approach will apply to EEA firms seeking authorisation as they exit the TPR, and firms from non-EEA...
FCA speaks on culture in investment management sector
Marc Teasdale has spoken on FCA’s work with the asset management sector, and how it is intended more closely to align the sector with its essential purpose – that is, protecting and growing the capital and...
FCA sets out views on cannabis-related businesses
FCA has set out its views on how it is assessing applications for listing from cannabis-related companies. It notes that, although medicinal cannabis has been legalised in the UK, there is a risk that the proceeds from...
Regulatory Initiatives Grid heralds return to “normality”
FCA has published the second edition of the Financial Services Regulatory Initiatives Forum’s Regulatory Initiatives Grid. The grid, first published in May, is aimed to help firms see upcoming regulatory work...
Commission reports on MLD4 trust identification
The Commission has reported to the Council on whether Member States have identified trusts and similar arrangements and made them subject to the provisions of MLD4. It notes that 3 lists have been published, and from...
FCA plans £100,000 penalty on individual for market abuse
FCA has published a decision notice imposing a £100,000 penalty on an individual for market abuse and banning him from performing any functions in relation to any regulated activity. It found that Corrado Abbattista...
FCA launches call for input on consumer investment market
FCA has published a Call for Input to help it look at improving consumer outcomes in the investment market. FCA is concerned that consumers often get sold unsuitable products with high fees and is looking at: what it...
FATF reports on red flag indicators in virtual assets
FATF has published a report on virtual assets red flag indicators of money laundering and terrorist financing. The report focuses on: technological features that increase anonymity; geographical risks; transaction...
Increasing calls for extension of Complaints Scheme consultation
The Treasury Committee has received increasing numbers of representations that the 8 week consultation period that ended today (14 September) to submit comments on the revised regulatory complaints scheme, was too short...
FCA and PSR publish annual reports
FCA has published its annual report and accounts for 2019/20. The report notes FCa’s key achievements for the year. Apart from the obvious measures to address the problems caused by Covid-19, it highlights:...
MEPs call for action on FinTech
MEPs are pleased that the Commission has committed to an early finalisation of its Action Plan on Fintech, but stress the measures must get the balance right between innovation and consumer protection. They want a...
UK and Japan strike free trade deal
The Government has announced a new free trade agreement between the UK and Japan, which it says will increase trade with Japan by an estimated £15.2 bn. For financial services, there will be improved market access and...
Up next from FCA
The latest Policy Development Update notes a reinvigoration of FCA in publishing consultation and discussion papers before the end of the calendar year. It plans: consultation on amendments to accommodate the Breathing...
FCA to update mandatory resilience survey
FCA is to repeat the survey it carried out with a sample of firms in June, to assess the changes in firms’ financial positions as a result of the pandemic. It will be contacting firms between 16-22 September with...
EBA calls for single AML rulebook
EBA has published its response to the European Commission’s call for advice on how to strengthen the AML/CFT legal framework. It feels the only way to tackle vulnerabilities that come from divergent practices...
FCA censures individual for market abuse
FCA has publicly censured the former CEO of Worldspreads and banned him from any roles linked to regulated activity, as as result of market abuse. It originally fined Conor Foley around £650,000 but imposed a public...
SFO updates on enforcement activities
Lisa Osofsky has spoken on SFO’s most recent enforcement activity and its priorities for the future. She spoke about how SFO has worked on its priorities of better cooperation, use of technology, intelligence...
FCA reminds firms of market abuse investigation protocol
In its latest edition of Market Watch, FCA focuses on how market participants should act when they receive information requests from FCA when it is investigating possible market abuse. It stresses that: if firms handle...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation mainly covers: onshoring changes to the Handbook or technical changes FCA will need to make as a result of onshoring. It asks for comment on the bulk of the changes by 4...
PRA finalises minor rule changes
PRA has published its policy statement on proposals in one of its Occasional Consultations. The changes confirmed will cover: minor updates on liquidity reporting; LIBOR updates for non-Solvency II insurers; other minor...
OFSI publishes frozen asset report form
OFSI has published the form on which firms need to make their 2020 frozen assets report. It requires information from relevant firms by 16 October.
FCA publishes latest Conduct Questions update
FCA has published its latest report on its “5 Conduct Questions” initiative. It notes the changes that wholesale banking firms have been making to their conduct and culture as a result of it since 2015, and...
FCA confirms delay to first F&P assessment
FCA has confirmed that solo-regulated firms will now have until 31 March 2021 to complete their first fitness and propriety assessments on Certified Persons. Treasury has made a statutory instrument to confirm the...
FCA updates on digital sandbox
FCA has updated on the results of its 3 week “DataSprint” which created datasets that the firms now in the digital sandbox can use for testing and developing proofs of concept around 3 use cases related to...
PRA writes to firms on “operational readiness” for TPR
PRA has written to CEOs of all firms preparing to enter the TPR at the end of the transition period. The letter notes that all firms that have submitted a notification or application for authorisation will automatically...
Complaints Commissioner calls for action on disability issues
The Complaints Commissioner has published its response to a mental health worker who had complained to FCA that it did not have in place appropriate policies to comply with its “anticipatory duty” under...
Complaints Commissioner upholds complaint on FCA cloned firm process
The Complaints Commissioner has ordered FCA to pay £200 compensation to an aggrieved investor who invested in a clone firm which was not at the time listed on the FCA Register. A scammer had cloned the details of a...
FCA updates on complaints data return dates
FCA has notified firms it will allow them to apply a 2 month deadline to the complaints data summary due on 31 August, so that the data for complaints covering reporting periods ending between 1 January and 30 June 2020...
FCA publishes modification by consent for CTF moves
FCA has published a modification by consent to allow Child Trust Fund providers to move dormant CTFs into protected account ISAs and service them in circumstances when they are unable to contact the client.
FMLC responds on AML action plan
FMLC has responded to the Commission’s consultation on its AML action plan. The response focuses on: the scope of EU AML legislation on virtual currencies, and how it might be helpful to broaden the definition;...
FCA looks at transaction reporting and Brexit
In the latest edition of Market Watch, FCA looks at how MiFID firms should be preparing for the end of the transition period. It: explains the temporary transitional power, noting why it is not appropriate to use it for...
FOS focuses on Covid-19 complaints
The latest edition of Ombudsman News focuses on complaints arising from Covid-19 and its impact on consumers and SMEs. FOS notes that some of the issues are new, but others are common issues made worse by the pandemic...
FSB publishes insurance resolution methodology
FSB has published its key essential criteria which will guide assessment of how a jurisdiction’s insurance resolution framework has complied with FSB’s “Key Attributes of Effective Resolution Regimes...
London and Capital report delayed
Dame Elizabeth Gloster has explained to FCA that she will need until late November to complete and report on her investigation into FCA’s regulation of London and Capital Finance. FCA is happy to work with her...
FCA consults on extension of fin crime reporting
FCA is consulting on the possible extension of its annual financial crime reporting obligation. It wants to include firms that carry on activities that potentially pose a higher money laundering risk. FCA currently...
Court says Treasury should tell whereabouts of frozen assets
A consortium of reinsurers had tried, unsuccessfully, to trace funds owned by the Syrian state and its agents. The funds are frozen as a result of sanctions, and if the reinsurers could locate them, they would ask the...
HMRC publishes list of MLR miscreants
HMRC has published its list of businesses who, over the past tax year, have not complied with their obligations under the MLRs. Over the period, there were 15 “major” penalties, including a fine of nearly...
FCA to reopen TPR window
FCA has updated its website pages on the Temporary Permissions Regime. It plans to reopen the TPR notification window on 30 September to allow for further new notifications, and to allow fund managers to update...
EIOPA finalises Pan-European Pension Product
EIOPA has provided the Commission with a set of draft RTS and ITS and its advice on delegated acts needed to implement the Pan-European Personal Pension Product framework. It has already developed the PEPP KID and PEPP...
FCA updates on SMCR and reporting
FCA has reminded solo-regulated firms of the new annual reporting requirement that will oblige them to tell FCA whether they have taken disciplinary action against individuals who are not senior managers for Conduct...
Glen outlines stance on EU crowdfunding legislation
John Glen has written to Sir William Cash and Lord Kinnoull explaining the Government’s views on the EU Crowdfunding Regulation. He notes that the Regulation takes effect after the end of the transition period...
FCA stresses client money protection priorities
FCA has written a Dear CEO letter to firms that provide non-discretionary investment services. It notes that clients may have rebalanced their portfolios to mitigate volativity during the pandemic, which has resulted...
Wolfsberg updates on effective AML programmes
The Wolfsberg Group has published a statement on steps financial institutions can take to evolve their AML./CTF regimes to meet the key elements of the Wolfsberg effective programme. It outlines the key steps as: assess...
FMLC responds on departure from EU case law
FMLC has offered its views to the Ministry of Justice on whether courts and tribunals other than the Supreme Court and High Court of Judiciary should have the ability to depart from retained EU lase law after the end of...
EBA seeks views on Regtech
EBA has published a RegTech industry survey to seek views on how RegTech solutions are being, and could be, used. It wants to understand current activity, raise awareness of it, and have information to inform future...
Treasury publishes annual AML/CFT supervision report
Treasury has published the annual report for AML and CFT for 2018-19. The report looks at the work done on supervisory activities and on promoting and ensuring compliance. There is a section devoted to the FATF key...
Up next from FCA
FCA’s latest Policy Development Update heralds: consultation on financial crime reporting during Q3; PS on debt advice levy rates in Q4; CP on exit fees in investment platforms and comparable firms during 2021; PS...
CMA revokes HSBC directions
The CMA has on 6 August revoked the Directions given to HSBC under the Retail Banking Market Investigation, as the Implementation Trustee confirmed HSBC’s compliance with the Order on App-to-App Redirection...
PSR focuses on APP scams
The PSR has stressed the importance of the CRM Code in reimbursing victims of APP scams. It notes the Covid-19 pandemic has changed the way many people make payments, and left many of them vulnerable to fraud. The Code...
Tribunal finds FCA acted unreasonably and must pay firm’s costs
The Tribunal has rules on an application by a firm for FCA to pay the costs of a previous Tribunal hearing. FCA decided to cancel the authorisation of a firm that had failed to pay its fees and failed to satisfy FCA...
PRA confirms temporary high balance extension
PRA has confirmed the extension to FSCS protection for temporary high balances in bank accounts, until 1 February 2021. Protection will last for 12 months until then, when it will revert to 6 months.
FCA updates on Covid-19 and complaints handling
FCA has reviewed and updated its webpage on how firms should handle complaints during Covid-19. It has made some minor changes to its previous statement and will review it again at the end of October. The guidance...
FCA consults on consumer refund guidance
FCA has published a guidance consultation on how firms should be helping customers with rights and routes to refunds. The guidance builds on FCA’s previous statements on consumers’ rights when their trips...
ESAs consult on management body suitability guidelines
EBA and ESMA have published a joint consultation on updating their guidelines on assessing the suitability of members of the management body and key function holders in regulated firms. The revised guidelines stress...
Treasury amends PRIIPs requirements
Treasury has published a policy statement on how it proposes to amend the PRIIPs Regulation as it onshores it. It plans early changes to address the most pressing concerns and to ensure the regime provides more...
OFSI updates guidance and issues maritime guidance
OFSI has updated various guidance and FAQs, including on monetary penalties. The update includes targeted FAQs for:
the charity sector;
the import and export sector; and
maritime.
EBA agrees tentative 2021 stress test
EBA has agreed on a tentative timeline and sample of the 2021 EU-wide stress test, which it expects to launch a the end of January 2021 and the results be published at the end of July 2021. The test will be carried out...
EBA consults on internal governance guidelines
EBA is consulting on proposed revisions to its guidelines on internal governance. The changes specifically reflect the CRD V and IFD requirements as they affect credit institutions. The focus of the changes is: on the...
EBA updates on SREPs and Covid-19
EBA has summarised the difficulties Covid-19 has presented to supervision generally, and the SREP process in particular. It has now published guidelines to supervisors building on the requirements of the CRD and the...
ECB urges better benchmark reform preparation
ECB is concerned that banks are not sufficiently prepared for benchmark rate reforms, despite being well aware of the complexities. It has now published a set of suggested good practices to help banks structure their...
FCA updates on sandbox
FCA has announced its acceptance of 22 businesses into cohort 6 of its sandbox. It had received 68 applications, mainly from the retail banking, payments and retail lending sectors. More than half were seeking to...