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...
Author - Emma Radmore
Emma Radmore
Treasury Committee to hold economic crime hearing
The Treasury Committee will hold its next evidence session in its Economic Crime Inquiry on 14 June. The witnesses will come from the FCA, PSR, HMRC and Companies House.
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...
Basel Committee consults on prudential treatment of crypto exposures
The Basel Committee is consulting on preliminary proposals on how to treat banks’ cryptoasset exposures. It notes that exposure is currently limited, but there is the prospect that heightened exposures could...
EBA finalises PSD2 incident reporting guidelines
EBA has finalised and published its revised guidelines for major incident reporting under PSD2. PSD2 requires PSPs to report major operational or security incidents to their supervisors where those incidents are likely...
Law Commission consults on corporate criminal liability
The long-awaited Law Commission consultation on corporate criminal liability was published on 9 June. The Law Commission notes that companies can only be found guilty of offences that require proof of a certain mental...
LSB launches Access to Banking Standard Review
LSB has published a consultation paper on the review of the Access to Banking Standard. The Review is aimed at determining whether the Standard is still an effective way to achieve fair outcomes for customers (consumers...
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...
FCA consults on CONC and other miscellaneous changes
FCA’s latest quarterly consultation on minor rule changes focuses on: changes to CONC to enable firms that provide credit cards to offer instalment plans without applying for a rule modification make minor changes...
CPS updates on failure to disclose prosecution factors
CPS has updated its guidance on prosecuting “standalone” failure to disclose offences under s330 POCA. It can now (from 2 June) bring a prosecution regardless of whether a predicate money laundering offence...
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...
FCA extends temporary crypto registration regime
FCA has extended the date of the Temporary Registrations Regime for cryptoasset businesses until 31 March 2022. The regime, which allows businesses that were in existence and applied for registration before 16 December...
Treasury extends UCITS PRIIPS exemption
Treasury is to extend the exemption from the requirements of the PRIIPs Regulation for UCITS until 31 December 2026.
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...
FCA and PRA make new accountability rules for long term absence
FCA and PRA have confirmed their policy on long term absences. FCA has made new rules on individual accountability, requiring firms to notify it when a Senior Manager or Approved Person at an AR takes more than 12...
FCA finalises value pricing and loyalty penalty measures
FCA has finalised its package of remedies that will protect home and motor insurance customers from loyalty penalties and improve competition. The package of rules will: require insurers to offer renewing customers a...
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...
FOS publishes Annual Complaints Data
FOS has published its annual complaints data for April 2020 – March 2021. Key highlights include: an overall increase in new complaints of 2% from the previous year – but a 58% increase when PPI complaints...
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...
FCA brings charges for unauthorised activities
FCA has taken criminal proceedings against Ian Hudson for carrying on his business, Richmond Associates, with the intention to defraud creditors and for carrying on the regulated activities of accepting deposits and...
ICO fines Amex for direct marketing messaging without consent
The ICO has fined American Express Services Europe Limited for sending, or instigating the sending of, over 4 million direct marketing messages over the period of a year, for which subscribers had not provided consent. ...
FCA updates on change of legal status applications
FCA has updated its website to state that from 1 June 2021 firms will no longer be able to apply to change their legal status. Instead, they will need to submit a new authorisation application for the new entity and...
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...
FCA clarifies application of EBA outsourcing guidelines
FCA has updated its webpage on outsourcing and operational resilience to clarify the application of EBA’s guidelines on outsourcing. It has confirmed that it expects relevant firms to continue to comply with them...
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 reminds that complaints handling should be back to normal
FCA has reminded firms that its guidance on complaints handling during the pandemic expired on 1 May, and firms should now be back to normal.
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...
Treasury clarifies CIS exemption for P2P operators
Treasury has amended the FSMA (CIS) Order to clarify that the exemption that means operators of peer-to-peer lending platforms are not operating CIS when they carry out activities closely associated with platform...
FCA finalises guidance to insolvency practitioners
FCA has finalised its non-Handbook guidance on how IPs should approach insolvencies of regulated firms. The guidance focuses on how an IP appointed to a regulated firm should ensure the firm meets its ongoing financial...
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...
FCA speaks on UK regulation and FCA transformation
Nikhil Rathi has spoken on FCA’s vision for regulation of the future. His audience was overseas banks, and he focussed on FCA’s priorities in regulating overseas firms at the same standards as domestic...
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...
Financial Services Bill – what changed?
Read our article for Compliance Monitor on the key changes from the original Financial Services Bill to the Act given Royal Assent – and some of the proposals that weren’t included.
FCA fines for financial crime failings in cum/ex trading
FCA has imposed its first fine for failings in cum/ex trading, dividend arbitrage and withholding tax reclaim schemes. It fined Sapien Capital £178,000 for systems and controls failings that led to the risk of...
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...
PRA reports on collections in non-systemic banks
PRA has published a letter setting out the findings of its thematic review on collections. The letter follows PRA asking the internal audit function within non-systemic UK deposit takers to review their: collection...
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...
FCA publishes DP on high risk investment promotions
Following feedback to its Call for Input on Consumer Investments, FCA has published a discussion paper on proposals to strengthen its financial promotion rules for high-risk investments. The paper focuses on three main...
FS Bill gets Royal Assent
The final stages of the FS Bill’s passage through Parliament have been completed, with the Lords agreeing on the Commons amendments to the duty of care provisions, and not insisting on following through with the...
FCA consults on changes to UK MiFID firm organisational requirements
FCA is consulting, as part of its wider capital markets reform work, on a set of changes to the conduct and organisational requirements on research and best execution. The aim is that the rules continue to achieve...
Court considers “by way of business” test
The High Court has considered the scope of the “by way of business” test for the purposes of FSMA. Mr and Mrs A were involved in property development. They took a loan from a Mr P when they were unable to...
Debate over FS Bill continues
The House of Commons has not agreed with some of the Lords amendments to the FS Bill. In particular: they reject the addition of the requirement on FCA to make rules on the duty of care to take effect by 6 April 2022...
Government makes Global Anti-Corruption Sanctions Regulations
The Government has made the Global Anti-Corruption Sanctions Regulations 2021 using its powers under SAMLA. The Regulations took effect one hour after being made, at noon on 26 April. They give the Secretary of State...
PRA consults on correcting “higher paid MRT” definition
PRA is consulting on correcting an error in the PRA rulebook which currently means the definition of “higher paid material risk taker” is not aligned with PRA’s approach in SS 2/17. The error happened...
FCA concerned about Provident scheme of arrangement
FCA has published a letter setting out its concerns over Provident SPV Ltd’s proposed scheme of arrangement. FCA attended the hearing at which Provident applied to the High Court for permission to hold meetings of...
HMRC updates on MLR non-compliance
HMRC has issued its periodical update on businesses that it has found to be non-compliant with the MLRs. Its latest report covers the quarter from February 2020 – January 2021. The largest fines have been on MSBs...
OFSI blogs on licensing
OFSI has published a blog on licensing under the sanctions regime, prompted by the changes to the UK sanctions regime post-Brexit. The blog gives an overview of the licensing process, including OFSI’s top tips on...
PRA updates on remuneration reports templates
PRA has updated firms on its approach to the Remuneration Benchmarking and High Earner’s Reporting Templates, part of the EBA Taxonomy. This information became reportable in XBRL format from the end of 2020, with...
FCA takes criminal action for unauthorised mortgage activities
FCA has started criminal proceedings against 2 individuals for unauthorised activities relating to mortgages. Larry Bareto traded as an unauthorised firm and Tassib Hussain is an accountant. Over a 3 year period Mr...
Parliament publishes FS Bill Lords amendments
Parliament has published a full list of amendments made at the Lords Report stage of the Financial Services Bill. These include: requiring FCA to have regard to the principle that firms should not benefit from...
JMLSG consults on changes to Trade Finance guidance
JMLSG is consulting on changes to the trade finance chapter of part 2 of its guidance. The changes update explanations and references and reformat the text on developing a risk-based approach. It asks for comments by...
LSB updates CRM Code
The LSB has published updates to the CRM Code following its review. The new provisions include those on governance and oversight, and will take effect from 14 June 2021.
FCA censures firm and requires compensation payment
FCA has publicly censured a firm that sold extended warranty insurance and ordered it to pay customers compensation of nearly £400,000. It would have imposed a fine of nearly £1m had it not been for the extreme...
FCA delays Business Plan
FCA will publish its 2021/22 Business Plan in July rather than the usual April. The publication will come alongside its accounts and will include detail on its plans for transforming the organisation.
Treasury Committee starts Greensill Capital inquiry
The Treasury Committee has launched an inquiry into lessons that can be learnt from the failure of Greensill Capital. The inquiry is supported by letters to various regulators, including a letter to FCA asking for...
FCA issues second IFPR consultation
FCA has published its promised second consultation on the IFPR. The IFPR creates a new regime for solo-regulated MiFID investment firms. The consultation covers: aspects of own funds requirements not previously...
Nausicaa Delfas to join FOS
FOS has announced that Nausciaa Delfas will take up the post of Interim Chief Executive and Chief Ombudsman from mid-May. Meanwhile, Stephanie Cohen will take up the permanent role of FCA COO in June.
Treasury consults on regulation of mini-bond issuance
Treasury has published an open consultation on bringing the issuance of mini-bonds (or, as the consultation refers to them “non-transferable debt securities) within the scope of regulation, as part of the package...
FCA stops Cypriot firm offering CFDs in UK
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...
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...