FIN.

Author - Emma Radmore

Treasury updates on economic crime levy

The Treasury consultation on the imposition of an economic crime levy concluded last October and Treasury has published a summary of the responses it received. The Government is now consulting until 15 October on the...

Court finds FSCS entitled to reject claim

The High Court has ruled on an application for judicial review of a decision by FSCS to refuse to compensate investors after an investment firm failed. The investors had bought wind bonds, initially before the firm in...

OPBAS publishes progress report

OPBAS has published its latest report on its work to bring compliance with AML requirements in the professional services supervisory  sector up to the levels in other sectors.  Its report shows there are still...

UK Finance looks at retail CBDC

UK Finance has published a report looking at the threats and opportunities of a central bank digital currency.  The BoE says the around 95% of funds people hold to make payments are held as bank deposits rather than...

Commission updates PRIIPs KID standards

The European Commission has adopted new technical standards for the PRIIPs KID, which will apply from 1 July 2022 (so long as approved by the Council and Parliament), and will finally apply to all retail products. The...

IOSCO publishes AI usage guidance

IOSCO has published guidance for supervisors of intermediaries and asset management firms when they use AI and machine learning.  It notes both the benefits and the risks of usage, and says that as use is growing...

Industry works on FS strategy plan

TheCityUK has produced a new international strategy aimed at returning the UK to its status as the world’s leading international financial centre within 5 years. If focuses on how to bolster competitiveness and...

OFSI calls for frozen asset reports

OFSI has called for any firm holding assets of designated persons to submit the annual frozen assets report by 15 October, reporting on the value of all assets as of close of business on 30 September. As usual, the...

TI responds on corporate criminal liability

Transparency International has responded to the Law Commission consultations on reform of corporate criminal liability. The response notes: that reform is long overdue, given the difficulties in establishing corporate...

FCA publishes P2P strategy letter

FCA has published its portfolio supervision letter to loan-based P2P crowdfunding platforms, sent to relevant firms in May. In that letter, it identified 4 potential areas of harm for investors (lenders): the secondary...

FCA publishes requirements on SIPP operator

FCA has published the second supervisory notice it made in relation to DAC Pensions Limited, a small SIPP operator. The firm had accepted significant business from two EU-based introducers, operating in the UK under...

FCA sending further resilence survey updates

FCA has started to email its fifth update to the Covid-19 resilience survey.  Firms in Tranche 2 are receiving it between 23-25 August, and firms in the TPR and supervisory run off regime will receive it from 26 August...

Register now for FIN Live: 9 September

FIN subscribers will already have received an email enabling them to register for our webinar at 10:00 on 9 September, at which Lucy Hadrill, Emma Radmore and Peter Warcup will cover FCA’s business plan, possible...

FCA updates on SCA

FCA has updated its webpage on SCA, to confirm its decision to extend the deadline for full SCA compliance for e-commerce transactions to 14 March 2022. However, it also stresses its expectation that if firms can apply...

FCA updates on GI pricing

FCA has made some minor changes to the rules on general insurance pricing which were published in May. Among other things, the changes: clarify how the rules apply to firms that offer discounts or incentives to...

HMRC updates on MLR fines

HMRC has updated its list of businesses that have not complied with the MLRs. Among the actions: a fine of £1,000 on an accountancy service provider that failed to provide documents when requested; a fine of £6,300 on...

Commission asks for views on UCITS KID

The Commission is asking for views on its proposal for a Directive on UCITS. The proposals relate to the use of KIDs by UCITS managers. The current exemption from the use of a PRIIPs KID for UCITS expires at the end of...

LSB looks at next steps for CRM Code

LSB says the responses it received to its call for input on the CRM Code suggest the risk of APP scams is not evenly distributed among payment providers, and some respondents thought it did not cater for certain...

OFSI fines fintech for sanctions breach

OFSI has fined TransferGo Limited (an authorised payment institution) £50,000 for making funds available to a person designated under the Ukraine sanctions regime. The fine relates to 16 transactions where TransferGo...

Court sanctions Provident scheme

The Court has sanctioned the Provident Personal Credit Limited scheme, which includes a proposal to wind down the business. FCA has not supported the scheme for reasons including that consumers are being offered...

FCA writes to RemCo chairs

FCA has written to the Chairs of Remuneration Committees within firms to set out its approach to remuneration this year and to highlight the areas RemCo chairs should be considering. Broadly, the Chair must remain...

EBA consults on AML compliance officers

EBA is consulting on new guidelines on the role, tasks and responsibilities of AML/CFT compliance officers within supervised entities. The guidelines also consider the wider governance set up, including at group level...

FCA publishes individual ban notice

FCA has published a decision notice noting its decision to ban Markos Markou, director and CEO of a mortgage broker, and to fine him £25,000.  FCA considers Mr Markou not fit and proper to perform his senior management...

FCA updates on IFPR

FCA has updated a number of pages on its website to reflect the forthcoming IFPR. Among other things, it has updated its pages on: authorisation applications for wholesale investment firms capital requirements...

FCA updates on platforms portfolio strategy

FCA has published an update to its strategy for its platforms portfolio of firms. It first set out its major concerns in February 2020, and has written to firms to update them on its focus going forwards. Its key...

PRA updates on accountability

PRA has updated its web resources on strengthening accountability in banks and insurers. It has highlighted its paper on working together to drive change in diversity and inclusion and on its updates for remuneration...

FCA publishes second set of IFPR rules

FCA has published its second “near final” rules on elements of the new IFPR.  These rules cover : own funds requirements firms acting as clearing members and indirect clearing firms basic liquid assets...

FOS commissions independent review

The FOS Board has commissioned an independent review of its service, aimed at ensuring it can continue to meet its customers’ needs.  The first part of the review will look at the current operational effectiveness...

FCA confirms new rules

FCA has confirmed various rule changes in its latest Handbook Notice: to the technical standards under EMIR, to give firms clarity and to align the UK in implementing various Basel Committee and IOSCO recommendations...

PRA updates MRT waiver

PRA has updated its list of modifications by consent to include an application to allow CRR firms to exclude from idenfication as MRTs employees who meet the pay-based criteria for the definition but are deemed not to...

ESMA updates funds FAQs

ESMA has updated its FAQs: on the AIFMD, in relation to risk measurement and performance fees; and the UCITS Directive, in respect of how the guidelines apply to funds with multiple portfolio managers and performance...

FCA publishes annual report and accounts

FCA has published its annual report and accounts for 2020/21, accompanied by the usual specific report.  Interesting figures include: enforcement data: 134 final notices were issued of which only 15 were against...

FCA publishes Business Plan

FCA’s 2021/22 Business Plan highlights: how FCA has to change as the environment in which it operates changes and how investment in technology and changes in culture are key to this; the need to enable customers...

FCA updates on BI

FCA’s latest update on business interruption insurance: publishes the Supreme Court Order varying the High Court declarations, and a table highlighting the most relevant declarations by policy type; publishes the...

CLLS responds on fin proms

The City of London Law Society has responded to FCA’s discussion paper on changes to the financial promotion rules for high risk investments and for firms approving financial promotions. It: is concerned the...

FCA bans fraudster

FCA has banned Matthew Creed from performing any regulated activity.  Mr Creed had been an approved person at a firm from 2005 – 2019, and was also the director of an unauthorised company from 2002- 2013. In 2012...

ESMA warns of PFOF risks

ESMA has issued a warning to remind firms of the investor protection concerns around receipt of payment for order flow. It has previously said that it is unlikely that the receipt of PFOF would be compatible with MiFID...

Treasury updates AML advisory

Treasury has updated its advisory notice on high right third countries for AML purposes. The notices follow the FATF updates, and the list replicates the FATF list.  Post-Brexit, Treasury now included the list in...

LSB stresses importance of good governance

LSB has stressed the importance of governance as underpinning everything a firm does, and has started a series of publications to help firms.  Its latest guidance looks at how to achieve best practice.  The guide...

FCA finds “host” fund manager weaknesses

FCA has carried out a review of authorised fund managers that provide hosting services to third party investment managers outside of their corporate group. It concluded that some firms were operating well but others did...

Dear CEO letter on retail bank AML failings

FCA has finally published the Dear CEO letter it sent to retail banks on 22 May on AML failings. The letter sets out the common themes FCA has observed and highlights its disappointment that it continues to find certain...

Damning report on EU AML efforts

The European Court of Auditors has published a damning report on the EU’s efforts to fight money laundering in the banking sector.  A review found institutional fragmentation and poor coordination at EU level. The...

FATF holds plenary

FATF has held its June 2021 plenary session, at which it finalised a number of reports. Key outputs include: no changes to the highest risk jurisdictions, but Haiti, Malta, the Philippines and South Sudan have been made...

FCA updates rules

FCA’s latest Handbook notice confirms updates to: TC to improve information sharing on retail advisers’ failure to comply with appropriate FCA rules and to update on accredited qualifications. COMP to...

Premium finance disclosure changes delayed

FCA has published an update to its feedback statement and new rules on general insurance pricing practices, which means that the new rules relating to premium finance disclosure will take effect on 1 January 2022...

FCA publishes VOP refusal

FCA has published its final notice explaining its reasons for refusing a firm’s application to vary its permission. Gedik International Limited was authorised in February 2020 as an agency brokerage with a set of...

IAIS publishes application papers

IAIS has published application papers on: resolution powers and planning; the paper looks at the objectives and concepts of resolution of insurers, entry into resolution, resolution powers and plans, resolvability...

More of FS Act comes into force

The second Commencement Order under the FS Act 2021 brings into force: on 28 June the provisions on forfeiture of money in relation to EMIs and payment institutions, as they extend to Northern Ireland; and on 1 July...

Treasury responds on Fin Proms

Treasury has published its response following its consultation on a regulatory regime for the approval of financial promotions. It had been concerned about: lack of expertise in approver firms; lack of due diligence by...

FCA speaks on tough regulation and the future

Nikhil Rathi has spoken on building a regulatory environment for the future. He focused on the opportunities Brexit has given for the UK to tailor its rules. Much of his speech addressed ESG issues, but he noted also...

PRA consults on financial holding companies

PRA has issued a further consultation on applying existing prudential consolidation requirements to financial holding companies and mixed financial holding companies approved or designated under FSMA. The proposals:...

LSB updates on CRM code review

LSB has published its follow up review of the CRM Code in respect of firms’ approach to reimbursing customers. Provision R2(1)(c) of the Code allows firms to decline reimbursement in specific cases. LSB looked at...