FCA has published a report looking at how it looks to protect consumers from investment harm. It includes details of applications that have been stopped, and notes that FCA opened nearly 350 supervisory cases involving...
Author - Emma Radmore
Emma Radmore
FCA reminds firms to check permissions regularly
FCA has reminded firms they should regularly check that they have all the right regulatory permissions for their businesses. Firms need not only to seek a variation of permission to add new activities, but should also...
Supreme Court backs FCA on BI judgment
The Supreme Court has released its judgment on the business interruption insurance test case. Commenting, on the judgment, FCA noted that the Court has substantially allowed FCA’s appeal on behalf of policyholders...
JMLSG signposts Brexit effects
JMLSG has noted the parts of its guidance affected by Brexit. In particular: EEA countries are now third countries; the same level of information is to be provided by UK PSPs regardless of whether funds are being...
FCA publishes whistleblowing VREQ
FCA has published the outcome of an application by Tokio Marine Kiln Insurance Limited and Tokio Marine Kiln Syndicates Limited to put in place a Voluntary Requirement in respect of whistleblowing policies and...
FCA updates on EU MoUs
FCA has updated its website to reflect the Memoranda of Understanding it has signed with various European authorities on co-operation and exchange of information. It has MoUs with ESMA, EIOPA and EBA as well as...
FS Bill finishes Commons stages
The Financial Services Bill has now completed its journey through the House of Commons and now moves to the House of Lords. Among the key changes now being debated are extensions to penalties for financial crime-related...
FCA consults on mortgage and consumer credit Covid guidance update
FCA is consulting, until 10:00am on 18 January, on updating its guidance for mortgage and consumer credit borrowers in financial difficulties as a result of Covid. Key proposals are: an extension on the ban on...
FCA publishes FAQ on insurance pricing plans
FCA has published a set of FAQs on its draft rules to remedy its concerns on general insurance pricing practices. It hopes the document will help firms understand the intention behind the proposals, but stresses that...
UK makes Swiss MiFIR equivalence rules
The Markets in Financial Instruments (Swiss Equivalence) Regulations 2021 take effect on 3 February, and designate BX Swiss AG and SIX Swiss Exchange AG as “equivalent” for the purposes of trading under...
ESMA reminds firms about MiFID 2 reverse solicitation and Brexit
ESMA has written to firms noting that some “questionable practices” around reverse solicitation in the context of MiFID 2 have become apparent since Brexit. It gives as an example, pop up “I...
FCA updates on BI case and insurance expectations
FCA says the Supreme Court will deliver its judgment in the business interruption insurance test case on the morning of 15 January. The judgment will be live-streamed and then published. FCA has also updated its...
Market Watch on recordings and alternative working arrangements
The latest edition of FCA’s Market Watch looks at FCA’s expectations on firms on recording telephone conversations and electronic communications while alternative working arrangements are in place. FCA had...
HMRC updates on MLR non-compliance
HMRC has updated its published data on businesses that do not comply with the MLRs. Between February and September 2020 it issued 4 substantial fines for failure to comply with obligations, including a fine of nearly...
FCA Covid financial crime guidance to expire
FCA has updated its pages giving guidance to firms on how to act during the pandemic. As part of this, it has noted that its statement on how firms should apply financial crime systems and controls will no longer apply...
FCA to repeat Covid resilience survey
FCA is to send out its Covid resilience survey for the third time. Firms that receive it (which will be between 13-19 January) must complete it.
FCA publishes Covid resilience survey results
FCA has published the results of the survey it sent to 23,000 forms on the real-time effect the pandemic is having on their resilience. Among its conclusions are: failures of firms due to the economic downturn are...
Regulators confirm Gibraltar passporting
PRA and FCA have confirmed that UK and Gibraltar firms will be able to continue to apply for and use a passport to do business in the other’s jurisdiction until, probably, the end of 2021.
Brexit “Trade and Cooperation” Agreement – FS impact
The Trade and Cooperation Agreement finally agreed between the UK and the EU contains very little definitive provision for financial services. As expected, there is no continuation of anything approaching the single...
FCA finalises all Brexit instruments and TTP
FCA has published its final Brexit rulebook onshoring instruments and guidance, and directions under its Temporary Transitional Power. The final instruments are largely unchanged from the “near final”...
CMA updates on financial services investigation
CMA has updated its website in respect of its investigation into anti-competitive practices in the financial services sector. The investigation, which started in late 2018, will now continue into 2021, with the further...
PRA finalises BRRD II rules
PRA has published its policy statement and final guidance on BRRD II. it has also published its final policy in relation to the amended Contractual Recognition of Bail in and amended Stay in Resolution parts of its...
Parliament publishes corporate criminal liability briefing
The Commons Library has published a research paper on corporate criminal liabilityr. It looks at the circumstances in which corporates can commit crimes in England and Wales and sets out reform options. The paper...
FCA fines Charles Schwab over client asset failings
FCA has fined Charles Schwab UK Ltd nearly £9m for failing adequately to protect client assets, carrying out a regulated activity without permission and making a false statement to FCA . FCA found the firm changed its...
ESMA publishes cloud outsourcing guidelines
ESMA has published its final report on outsourcing to cloud service providers. The guidelines cover: risk assessment and due diligence on providers; governance, organisational and control frameworks for monitoring CSP...
Regulators update on Covid-related SMCR expectations
The regulators have reminded firms of their expectations in respect of the SMCR, bearing in mind the challenges Covid-19 has presented: FCA has reminded firms that it still does not require a single senior manager to be...
FCA censures firm in relation to Connaught investments
FCA has publicly censured Blue Gate Capital Limited and ordered it to pay £203,000 in restitution to investors who invested in the Connaught Income Fund, Series 1. The Fund was a UCIS, which Blue Gate took over as...
PRA confirms rules on changes before end of transition
PRA and the BoE have confirmed their final and near-final policies setting out: EU exit instruments; non-binding materials; the PRA and Bank transitional direction and guidance documents – including on Solvency...
Court of Appeal upholds insider dealing convictions
FCA has announced the Court of Appeal’s decision in the case it brought against Fabiana Abdel-Malek and Walid Choucair. The individuals had been convicted of five offences each of insider dealing in 2013/14 and...
TAFA report shows little movement
Treasury has published its quarterly report on the functioning of TAFA, covering April to June 2020. The report shows that: total funds of £9,000 were frozen with 6 accounts or payments being frozen, but no new...
UK publishes 2020 NRA
Treasury and the Home Office have published the 2020 National Risk Assessment under the MLRs and presented it to Parliament. The report: looks at what has been done in recent years, including in terms of bringing new...
Final reports on FCA supervision of LCF and Connaught make damning reading
The Government has published its final report on the outcome of the Independent Investigation into FCA’s regulation and supervision of London Capital & Finance plc. Dame Elizabeth Gloster delivered her report...
Treasury updates special resolution code
Treasury has updated its code of practice that sets out the tools and powers available under the Banking Act 2009 in respect of the special resolution regime.
FCA makes Remuneration Code changes
FCA has published its final rules on updating the dual-regulated firms’ Remuneration Code to reflect CRD V. It has finalised its guidance on proportionality for the dual-regulated firms code, and published a set...
FOS consults on 2021/2 plan and budget
FOS is consulting on its plan and budget for next year. Key elements of the plan set out: its expectation to receive 160,000 complaints and resolve 210,000 whether the individual case fee will be £650 or £750 that the...
PRA evaluates SMCR
PRA has published a report that evaluates the SMCR and whether it has met its aims. In principle, it concludes that it has – it has helped ensure that senior individuals in firms take greater responsibility for...
FCA sets up temporary regime for crypto firms
FCA has set up a temporary registration regime for cryptoasset businesses who have applied for registration with FCA under the MLRs but whose applications FCA is still considering. It is taking FCA longer than hoped to...
EBA pleased at AML college cooperation
EBA has published a report analysing how well AML/CFT supervisory colleges are working. It is pleased that regulators are putting significant effort into setting up colleges, and has reported on good and poor practice...
Government calls for views on cross-border financial services framework
Treasury has published a call for evidence asking for views on the UK’s framework for cross-border financial services. Treasury wants to understand how the current overseas framework supports the UK’s...
FCA updates on complaints data
FCA has published its latest firm-specific and aggregate complaints data from firms for H1 2020. It specifically notes: the lowest levels of recorded complaints since H2 2016 – firms received 2.96m; the largest...
PRA writes Dear CEO letters on supervisory priorities
PRA has written to the CEOs of insurers, deposit takers and international banks on its 2021 supervisory priorities: to insurers, it says it will be engaging with stakeholders as it looks to tailor the regulatory regime...
Treasury makes Brexit financial crime laws
Treasury has made: the Sanctions Regulations (EU Exit) (Commencement) Regulations 2020: these bring into force the sanctions regulations made under SAMLA to set up thematic or country based regimes; and the second...
No BI judgment this year
FCA has confirmed the Supreme Court will not be handing down its judgment before January 2021.
FCA fines and bans individual for market abuse
FCA has fined a former portfolio manager, partner and CIO £100,00 and banned him as a result of market abuse. Corrado Abbattista worked for Fenicial Capital Management LLP. FCA found he had created a false and...
FCA consults on prudential regulation of MiFID firms
FCA is consulting on the first phase of its proposed rules for the UK Investment Firm Prudential Regime, aimed at simplifying the prudential requirements for solo-regulated firms that fall within MiFID and are subject...
UK and Singapore announce FTA
The UK and Singapore have announced the signing of a UK-Singapore Free Trade Agreement and negotiations on a UK-Singapore Digital Economy Agreement. For financial services, this means opportunities for UK Qualifying...
FCA makes new rules
At FCA’s latest board meeting, it made a number of Brexit-related instruments, including: general amendments, including amendments to BTS to check they operate effectively in UK law; SMCR and approved person...
FCA consults on proving presence of Covid
FCA is consulting on guidance to help policyholders, insurers and intermediaries to judge how to prove the presence of Covid-19 in a particular area. FCA wants to be able to issue the final guidance as soon as the...
Treasury makes Misappropriation Sanctions Regulations
Treasury has made the Misappropriation (Sanctions)(EU Exit) Regulations under SAMLA. The purpose is to revoke a number of EU regimes covering misappropriation of State funds, which were specific to a particular...
FCA fines firms for unsuitable pensions advice
FCA has fined LJ Financial Planning Ltd £107,200 for recommending that 114 customers transfer their pensions to the value of around £6m into SIPPs over a period of nearly 3 years from March 2010. FCA found the firm...
FCA confirms mini-bond marketing ban
FCA has confirmed that it will permanently ban marketing of speculative illiquid securities, including mini-bonds, to retail investors, from 1 January 2021. The permanent rules will also include a ban on listed bonds...
PRA makes CRD V changes
PRA has published a policy statement on further implementation of CRD V . It has also published its near-final rules which will not be changed, but PRA cannot make the rules until 28 December. The rules will make...
FCA publishes Brexit FAQs
FCA has created a new page on its website with FAQs on Brexit. The website draws together questions on:
the TPR
passporting
operating and the TPP and
transaction reporting changes
APP CRM Code interim funding to continue to June 2021
UK Finance has confirmed that 7 signatories to the APP CRM Code have agreed to extend the interim funding to compensate victims of scams until the end of June 2021. The funding will apply where the customer and the...
Commission to remove Mongolia from high risk list
The European Commission has published a draft regulation to remove Mongolia from the MLD4 high risk third country list. Once published in the Official Journal, the change will be effective after 20 days.
FCA consults on guidance for IPs
FCA has published a guidance consultation to help insolvency practitioners in their approach to insolvencies of regulated firms – particularly solo-regulated firms. It is aimed to help minimise the impact of...
PRA notes FCA “long-term absence” consultation
PRA has drawn the attention of firms to a joint chapter in FCA’s latest quarterly consultation on clarifying regulatory expectations for temporary long-term absences. The regulators plan to clarify what they...
Up next from FCA
FCA’s latest policy development update highlights as due before the end of the year consultation on changes to accommodate the Breathing Space Regulations.
Most other consultations are due in the New Year
OFSI says “prepare for Brexit”
OFSI’s latest blog alerts firms to the changes they will see at the end of the transition period. It notes that: SAMLA provides the UK’s autonomous legal framework for its sanctions regime the FCDO has...
FCA publishes RDR and FAMR evaluation
FCA has published an evaluation of the impact of the RDR and FAMR. On the whole, it found a positive impact. It notes that the FAMR has: led to a small increase in the number of adults who receive financial advice, and...
FATF consults on enhancing cross-border payments
FATF is consulting on how the challenges of cross border payments – namely high cost, low speed, limited access and limited transparency – can best be addressed. The survey builds on the G20 commitment to...
FCA writes portfolio letters to SIPP operators
FCA’s latest portfolio supervision letter is to SIPP operators. In the letter, FCA notes that, when SIPPs were originally launched, they were designed for higher net worth individuals looking to manage their own...
FCA pleased with RTO price cap
FCA has published an evaluation, which it says shows its rent-to-own price cap, which took effect in April 2019 has been effective in reducing the prices RTO firms charge. It says the prices of the two largest firms in...
FCA reminds firms to be ready for Brexit
FCA has reminded firms they have less than a month before the end of the transition period. It highlights: the changed rules that will apply from 1 January 2021, which are not subject to the Temporary Transitional...
FOS loses judicial review hearing
The Court has found against FOS in a judicial review hearing brought by a forex firm. TF Global Markets (UK) Ltd has suspended a number of accounts, including those of three individuals who subsequently complained to...
PRA confirms CRDV statement date
PRA has issued a statement explaining to firms when they can expect further information on the implementation of CRD V. PRA issued two separate consultations, the later of which closed on 17 November. It plans to...
FCA makes new rules
FCA’s latest Handbook Notice confirms it has made the following rules at its last 3 board meetings: changes to reflect the extension of various SMCR deadlines as a result of the pandemic (made in October); the...
Regulators make Brexit reporting statements
ESMA and FCA have published statements on: the impact of the end of the transition period on the trading obligation for derivatives under MiFIR; the reporting of securities financing transactions under the UK SFTR;...
LCF report due to be published before Christmas
In a statement to Parliament, John Glen confirmed that Dame Elizabeth Gloster has delivered her final written report on her investigation into London and Capital Finance to FCA. He has asked FCA now to work with...
FCA fines FX options broker for market misconduct
FCA has fined TFS-ICAP Ltd £3.44m for communicating misleading information to clients. It found that over a 7 year period brokers at the firm had “printed” trades – which meant the told clients a trade...
Directory person information starts to go live
Directory persons data for dual-regulated firms is now live on the new Directory. FCA has reminded solo-regulated firms that they must have submitted all data by the end of March 2021, and has also noted the dates...
FCA updates on Digital Sandbox
FCA is collaborating with the City of London Corporation on a “digital sandbox” to help innovative firms tackling challenges caused by the pandemic. FCA received 94 applications for 30 spaces on the pilot...
UK publishes retained Blocking Regulation
The DIT has published an information page on the UK Protection of Trading Interests Legislation, which includes the UK retained version of the EU blocking statute. The laws continue to protect UK persons who trade with...
FCA updates on complaints handling during Covid-19
FCA has published an exchange of letters with FOS on how firms have been dealing with complaints handling during the pandemic. As it has previously stated, firms have had enough time now to embed new ways of working...
ESMA speaks on challenges for fund managers
Verena Ross has spoken on the challenges for fund managers. She spoke briefly of how the sector has responded to the pandemic so far, but focussed on Brexit. She said that firms have now had 4 years to prepare for the...
Treasury Committee starts post-Brexit FS inquiry
The Treasury Committee has confirmed the start of its inquiry into how financial services regulations should be set and scrutinised by Parliament post-Brexit, how regulators are funded and the extent to which regulation...
Ombudsman News looks at trends and stats
The latest edition of Ombudsman News looks at its recently published complaints data (previously featured in detail in FIN), which saw a rise in complaints from people who borrowed money and then felt the debt was...
NCA gets record SARs
NCA’s 2020 SARs report shows a 20% increase on the previous period and a total of 573,000 SARs. Of these, nearly 62,500 were DSARs – an increase of 81% on the previous period. NCA also reports £172m as the...
FCA consults on use of FSB Benchmark powers
FCA is consulting on how it proposes to use its new powers under the FS Bill to ensure an orderly wind-down of LIBOR, following the announcement by ICE Benchmark Administrations that it plans to cease its euro...
ABI calls for advice charging overhaul
ABI says that nearly 75% of consumers say they will not pay for financial advice. It says the regulatory environment needs to adapt so that customers can get the advice they want and that is fit for purpose. It carried...
FCA reminds firms of importance of data protection
FCA has reminded firms of the importance of safeguarding customer data. It stresses that firms must remember their obligations in these changed operational times, and when leaving the market or merging with other firms...
FCA writes supervision letter to PCWs
FCA has written a portfolio supervision letter to CEOs of price comparison websites. The letter notes the key priority that customers buying products through PCWs should buy products consistent with their demands and...
Regulators update on FS Bill reforms
Treasury, PRA and FCA have updated the industry on the planned timelines for the introduction of the UK Investment Firms Prudential Regime and implementation of remaining Basel 3 reforms. The targeted implementation...
FOS publishes Q2 information
FOS has published complaints figures for July – September 2020 (Q2 2020). It: received 69,000 complaints in total received over 5,900 Covid-related complaints referred over 9,000 complaints to an Ombudsman upheld...
ESMA consults on fund marketing communications
ESMA is consulting on draft guidelines to specify the requirements for marketing communications promoting both UCITS and AIFs under the Regulation on facilitating cross-border distribution of collective investment...
Government takes equivalence decisions
The Treasury has announced its first set of equivalence decisions for EEA measures. The decisions relate to parts of EMIR, the CRR, Solvency 2, the CSDR, the Benchmarks Regulation, the CRA Regulation, the SSR and CCPs...
Government heralds future financial services regulation
Rishi Sunak has announced a range of measures the UK is now to take to ensure the financial services industry moves forward. In a speech, he praised all the measures the industry has taken to date and through the...
EBA reminds firms to finalise Brexit plans
EBA has reminded firms that, from the end of the transition period, UK firms can no longer provide services to EU customers on a passporting basis. It notes that: UK financial institutions offering services to EU...
Up next from FCA
Before the end of the year, FCA expects to publish:
consultation on amendments to take account of Breathing Space Regulations;
consultation on fees policy; and
feedback on the debt advice levy rate.
FCA updates on EEA regulator Brexit guidance
FCA has put together an information page sharing links to the websites of EEA regulators on which they have published guidance about the effects of Brexit on UK firms operating in their jurisdictions. Some of the pages...
UK Finance reports on post-Brexit sanctions SIs
UK Finance has published the results of a study it has carried out in relation to UK Sanctions statutory instruments, as they will look at the end of the transition period, to assess what differences there will be from...
Covid-19 measures weekly summary
It’s been a while since we needed to do a digest of these. In the light of the new English lockdown and the expiry of various measures, the last week has seen: FCA consultation on updated guidance for consumer...
EBA urges consumers first in POG supervision
EBA has published a report encouraging firms to put consumers’ interests first when they are applying product oversight and governance arrangements. It has found this focus is lacking in many firms. This report...
EBA publishes SREP expectations on TF/ML risks
EBA has published its Opinion in which it sets out how prudential supervisors should consider ML/TF risks as part of the SREP process. The Opinion is another expression of EBA’s exhortation on supervisors to...
Law Commission to examine identification doctrine for economic crime
The Government has published its response on the call for evidence on corporate liability for economic crime. The response summarises the work done to date, and the key reform options of: law to replace common law...
Committee calls for more evidence on post-Brexit FS
The House of Lords EU sub-committee has called for more evidence on financial services after Brexit. It now wants to focus on the priorities for the future relationship between the UK and EU and the consequences if...
FCA to propose mortgage and consumer credit support update
FCA reacted to the announcement of the further measures to contain Covid-19 by saying it will review its measures to support mortgage borrowers impacted by the pandemic. Although FCA stresses borrowers should always try...
FCA reminds of insurance product value importance
FCA has reminded insurance firms that they need to complete their reviews of the value of their products in the light of the pandemic. The reviews follow FCA’s guidance published in June, highlighting that there...
FCA confirms updated guidance for insurance and premium finance
FCA has confirmed its finalised guidance for insurance and premium finance firms, that applies from 31 October. The guidance contains minor changes from the consultation version, and supersedes the August guidance...
LSB publishes guidance on Access to Banking Standard
LSB has published guidance on how firms should be applying the Access to Banking Standard in practice. The standard is designed to ensure customers affected by branch closures get sufficient communication and clarity on...