FCA has updated its website in relation to the SMCR to confirm that its Covid-related guidance on workplace arrangements and work-related travel and its expectations on firms is no longer current.
Author - Emma Radmore
Emma Radmore
“Brexit Freedoms Bill” starts Parliamentary journey
The Government has published the Retained EU Law (Revocation and Reform) Bill 2022, which it is referring to as as the “Brexit Freedoms Bill“. The plan is to amend, repeal or replace all EU legislation by...
Economic Crime and Corporate Transparency Bill heralds Companies House reform
The Economic Crime and Corporate Transparency Bill has started its parliamentary passage. The Bill aims to crack down on money laundering and other crimes, primarily through: the long-promised Companies House reforms...
FOS publishes H1 complaints data
FOS has published its regular half-yearly update on complaints data relating to individual businesses. 212 businesses feature, with an average uphold rate of 37% (the same as the previous period). FOS has also reported...
FCA consults on trading venue perimeter
FCA is consulting on clarifications to the regulatory perimeter for trading venues and related services. The consultation is part of the wholesale markets review and reflects concerns expressed as part of the feedback...
FCA suggests changes to multi-occupancy building insurance market
Following a request from the then Secretary of State for Levelling-up, Housing and Communities in January, FCA (working with the CMA) has published its recommendations and potential remedies to give leaseholders better...
FCA updates on Link Fund Solutions investigation
FCA has confirmed it has now issued Link Fund Solutions Ltd with a draft Warning Notice following its investigation into the circumstances leading up to the suspension of the Woodford Equity income Fund. The firm has 14...
BIS calls for swift Basel III implementation
The Basel Committee has reiterated its expectation that all aspects of the Basel Framework should be implemented as consistently and fast as possible. More than 66% of jurisdictions plan to implement all or most of the...
FCA imposes conditions on CiC
On 12 September, FCA announced that it has imposed conditions on a proposed change in control. Dye & Durham is looking to take over the Link Group, which involves the acquisition of 7 FCA-authorised firms. One of...
FSM Bill progresses through Parliament
The Financial Services and Markets Bill had its second reading in Parliament on 7 September. There appears to be broad support for the Bill, and many MPs focussed on the importance of access to cash. On 8 September...
Treasury Committee publishes responses to “future of regulation”
The Treasury Committee has published responses from the Government, PRA and FCA on its report on the future of financial services regulation. Among the key observations are that: all regulators agree the importance of...
FCA speaks on “force multiplier effect”
Sarah Pritchard, Executive Director of Markets at the FCA has recently given a speech on how the “force multiplier effect” is key to fighting financial crime. She said the role of those in the first line of...
Government approach to crypto
The House of Commons library has released a research briefing setting out the Government’s regulatory approach to crypto-assets and currencies in advance of a Westminster Hall debate on 7 September. The report...
OFSI publishes annual frozen asset request form
OFSI has published the annual frozen assets reporting notice, template and accompanying guidance notes. All persons who hold or control funds or economic resources belonging to a designated person should complete the...
Innovate Finance publishes FSM Bill briefing
Innovate Finance has called out the aspects of the FSM Bill that are of particular relevance to the UK FinTech sector. It calls out the Bill’s proposals on: stablecoin regulation and the FMI sandbox(es) –...
Treasury says no need for specific “have regard” to financial inclusion
Richard Fuller has written on behalf of HM Treasury to the Treasury Committee in relation to the proposal that FCA be given a “have regards” in relation to financial inclusion. The effect of this, as part...
PRA writes to Treasury Committee on “strong and simple”
Sam Woods has written to Mel Stride answering the Treasury Committee’s follow up questions about the Strong and Simple framework. The letter explains that PRA received 19 responses to its consultation and says: in...
DRCF ToR published
The CMA has published the terms of reference for the Digital Regulation Cooperation Forum, which was established by the CMA, ICO and Ofcom in June 2020, with FCA joining in April 2021. The forum’s objectives...
FCA publishes quarterly consultation
FCA has published its regular quarterly consultation. It proposes changes to: the schemes regime under s272, and consequential changes to COLL, the Glossary, DEPP and EG. The changes specifically relate to what FCA...
FCA updates attestations stats
FCA has published details of the number of attestations it has received in the first quarter of 2022/3. It has received only 4, all in respect of retail business, and none from dedicated supervision firms. Over the...
FCA updates skilled persons data
FCA has published the figures for its skilled persons reviews during Q1 2022/23. 9 reports were commissioned, of which 4 related to retail banking and payments. 2 reports related to governance and individual...
OFSI updates sanctions guidance
OFSI has published a blog on who needs to make reports to it in relation to financial sanctions issues and how, and also also updated its general guidance on financial sanctions to give greater guidance on reporting.
FCA publishes robo-advice repayment decision paper
FCA has published an occasional paper that looks at the results from a robo-advice experiment which asked customers to make borrower repayment decisions. It drew several interesting conclusions, including that: the...
No further action against HBOS senior managers
PRA and FCA have finished their investigations into certain former senior managers at HBOS in relation to its 2008 failure. The regulators started the investigations in 2016 following the Green report on the scope of...
Wolfsberg Group publishes transaction monitoring RFI guidance
The Wolfsberg Group has published a guidance paper looking at requests for information as used in AML transaction monitoring. RFIs are used when correspondents or other PSPs are looking to understand transactions that...
FCA sets up ESG advisory committee
FCA is setting up a new advisory committee to its board to help on ESG issues, and is looking for a small number of external experts to join it. It is looking for interested parties who have in depth knowledge of ESG...
FCA responds to Premier FX complaints
FCA has upheld or partially upheld 5 out of the 31 complaints it received from people who lost money when money remitter Premier FX collapsed. The issues relate to events which happened some time ago, and in relation to...
FCA to send AR requests in December
FCA has confirmed it will be sending principal firms that have appointed representatives a s165 information request in December. The request (which FCA had previously said it would issue later this year) will seek...
FCA fines for failure to have trade surveillance requirements
FCA has imposed a fine of over £12.5m on Citigroup Global Markets Limited, for failing to comply with MAR trade surveillance requirements. MAR introduced a requirement from 2016 to monitor orders and trades to detect...
FCA warns again on misleading BNPL ads
FCA has written to BNPL providers and to the British Retail Consortium, warning them that even while some BNPL agreements remain currently unregulated, this does not mean that the financial promotion rules don’t...
UK Finance publishes UK payment market report
UK Finance has published a report on trends in UK payment markets in 2021 and forecasts up to 2031. Unsurprisingly, the report looks at the effects of the pandemic on payments that fell and then recovered, and at the...
Complaints Commissioner upholds complaint against Supervision Hub
The Complaints Commissioner has upheld a complaint about an individual’s dealings with FCA’s Supervision Hub. The complainant had emailed the hub and had no response, so had called. The call with an...
FCA to consult on SMCR enhanced scope coverage
FCA is to consult shortly on changes to clarify the scope of firms that fall within the scope of Enhanced Scope SMCR firms. When it renamed and moved the definition of “Significant IFPRU firm” as part of...
CMA ranks banks’ customer treatment
CMA has carried out a survey of individuals and small businesses to look at how well banks are looking after customers during the cost of living crisis. CMA made participation in the survey mandatory for all relevant...
FCA urges further transition of LIBOR-linked bonds
FCA is continuing to encourage issuers and bondholders of outstanding LIBOR-linked bonds to take whatever action is necessary to transition them to fair alternative rates. Wherever consent solicitation is practicable...
PRA removes deposit taking permission from Sonali Bank
PRA has varied Sonali Bank’s permission so that it no longer has permission to accept deposits. The decision, published in a second supervisory notice, states that the firm is failing to meet the threshold...
JMLSG updates Motor Finance guidance
JMLSG has published revisions to its sectoral guidance on Motor Finance. It has submitted the new guidance to Treasury for approval. The additions to the existing guidance comprise of an FLA industry standard annex...
Companies House writes to overseas entities on register entries
Companies House has written to overseas entities who already own or leave property or land in the UK and who must register information with Companies House by the end of January 2023. Any entity that does not comply can...
FCA updates CiC requirements for crypto controllers
FCA has updated its change in control pages on its website to reflect new forms for controllers of registered cryptoasset firms. From today (11 August), any person deciding to acquire 25% of more control of a registered...
Treasury Committee publishes BoE views on FSM Bill
The Treasury Committee has published a letter received from Andrew Bailey about the FSM Bill, in which the BoE welcomes the Future Regulatory Framework measures set out in the Bill, and supports the proposals for...
TheCityUK publishes manifesto for next PM
TheCityUK has set out 8 areas where the industry can work with the next Prime Minister, not least: delivering n the FSM Bill as soon as possible and reforming Solvency II creating tax incentives to accelerate financing...
GFANZ consults on net-zero portfolio guidance
The Glasgow Financial Alliance for Net Zero has published for consultation the GFANZ Portfolio Alignment Measurement Report to give additional guidance for financial institutions on implementing and selecting portfolio...
FMLC reports on RAO “similar contracts of guarantee”
The Financial Markets Law Committee has published a report looking at the wording in the RAO which extends the meaning of the term “contracts of insurance” also to include arrangements which the FMLC says...
UK Finance supports “simpler-regime”
UK Finance has responded to PRA’s consultation paper on its proposed definition of a simpler-regime firm. It supports the principle, but has suggested it would be appropriate to increase the ceiling below which...
UKJT consults on legal statement for digital securities
The UK Jurisdiction Task force is looking at the way in which English law can support the issue and transfer of equity or debt securities on blockchain and DLT systems. The statement will follow its work over recent...
FCA publishes “alternatives” supervisory letter
FCA has published its supervisory strategy letter for “alternatives” – that is firms that are predominantly active in the alternative investment sector. Although the letter, as usual, is addressed to...
PRA makes new rules
PRA has made changes to its rules, supervisory statements, statements of policy and technical standards following its Occasional consultation 3/22. The changes affect: Solvency II firms: in respect of the Statement of...
NCA and OFSI issue Russian sanction enablers alert
NCA and OFSI have issued a “red alert” sharing information on some of the common techniques that Designated Persons under Russian sanctions and their UK enablers are suspected to be using to evade sanctions...
FCA fines former NED for inside information disclosure
FCA has fined Sir Christopher Gent, former NED of ConvaTec Group, £80,000 for disclosing inside information to individuals in senior positions in two of the company’s major shareholders in advance of its...
FCA publishes Q1 whistleblowing figures
FCA has published data on the number of whistleblower reports it received in Q1 of 2022. It received 276 new reports containing 540 allegations, almost half through the online reporting form. The reports usually relate...
FCA confirms new AR rules
FCA has confirmed its new rules to make principal firms more responsible for their ARs. The package of rules, which will take effect from 8 December, will: require principals to notify FCA of future AR appointments 30...
FCA publishes 2022 “Dear Remco Chair” letter
FCA has updated its materials on SYSC 19D to include its “Dear Remuneration Chair” letter for 2022, which sets out its expectations as the Remuneration Committees determine the year’s remuneration...
FCA updates on mortgage switching
FCA is pleased that the number of borrowers who could save money by switching mortgages is now around 370,000, down from 800,000 in 2016. However, it urges borrowers to consider their mortgages, given the rising costs...
FCA consults on transfer advice redress
FCA is consulting on updates to how it calculates redress for unsuitable DB pension transfer advice. The consultation: confirms that FCA has carried out a review that shows that the current methodology is appropriate...
FCA finalises high-risk fin prom rules
FCA has published its policy statement with final rules on firms that are publishing promotions of high-risk products. The new rules will require firms that are issuing and approving the materials to have appropriate...
Court refuses judicial review on FOS mortgage rate decision
The High Court has found in favour of FOS in an application by a mortgage lender for judicial review of FOS’ decision on a complaint about mortgage interest rates. Mrs D had taken out a 10 year interest only...
FCA says applicants must prove ability to comply with Consumer Duty
FCA has updated its website in relation to applications for authorisation in light of its publication of the final rules on the Consumer Duty. It now says that it expects all applicants for authorisation or VOPs to be...
FCA publishes Carillion decision notices
FCA has published its decision notices in respect of Carillion plc and three of its former executive directors. As the company is in liquidation, FCA has imposed a public censure, which has not been appealed. However...
Law Commission consults on crypto
The Law Commission has published a paper setting out its proposals for reform of the laws relating to digital assets. It has identified many areas of law that need reform in order to recognise and protect the rights of...
Ombudsman News highlights gambling complaints
The latest edition of Ombudsman News from FOS highlights: the recent appointment of a new Deputy Chief Ombudsman and COO, both of whom will take up their roles by October; and FOS’ new guidance on the treatment of...
UK-U.S. Working Group meets
UK and U.S. participants held the 6th meeting of the UK-U.S. Financial Regulatory Working Group online on the 21st of July 2022, with present officials including senior staff from HM Treasury and the U.S. Department of...
Need more detail on the Financial Services and Markets Bill?
We’ve produced a detailed summary of the key aspects of the Financial Services and Markets Bill, following up on our headline post. While the Bill won’t be having its second reading until September, keep an...
CMA orders bank to send transaction histories
The CMA has ordered Monzo to send transaction histories for 13,000 customers who closed their accounts with the bank but were not sent the history required by the Retail Banking Market Investigation Order. The breaches...
Overseas Entities Registration Regulations made
The Register of Overseas Entities (Delivery, Protection and Trust Services) Regulations 2022 were made on 25 July. They specifically: cater for electronic delivery of documents required; list circumstances in which the...
Court confirms no statutory trust for unsafeguarded EMR/PSR assets
The Insolvency and Companies Court has given directions at the request of the liquidators of Allied Wallets Limited, a failed payment services firm, which was subject to the PSRs in respect of electronic payment...
FCA publishes fin proms data
FCA has published its quarterly data for the quarter ending June 2022 on its actions against firms that breach financial promotions restrictions and requirements. Key statistics include: review of 451 promotions...
PRA consults on O-SII approach
PRA is consulting on changes to its approach to identifying other systemically important institutions It currently carries out its assessments following the EBA methodology but feels Brexit gives an opportunity to...
MLR amendments made
The Money Laundering and Terrorist Financing (Amendment)(No 2) Regulations 2022 were made on 21 July. The changes implement Treasury’s conclusions following its consultation and will mainly take effect from 1...
European Scrutiny Committee reports on EU law
The European Scrutiny Committee has reported that the principle of the supremacy of EU law is incongruous with the UK’s legal framework and should be scrapped. As the law currently stands, the retained EU laws...
FATF looks at DP, technology and private sector information sharing
FATF has published a report looking at how collaborative analysis and ways of bringing data together can help financial institutions to build a clearer picture of the large and complex puzzle of transactions of which...
Treasury publishes “state of the sector” report
Treasury, with the City of London Corporation, has published the first annual review of UK financial services. The report looks at the successes of the financial sector, not least as an international hub, at the...
Treasury consults on payments systems regulation
Treasury is consulting on payments regulation and the systemic perimeter. The paper looks at how BoE currently applies the regulatory perimeter over payment systems and how it should approach reform. It also looks at:...
Regulators propose measures for CTP service resilience
BoE, FCA and PRA have proposed measures to oversee and strengthen resilience of services that critical third parties provide to the financial sector. The discussion paper follows previous reports and consultations, and...
New Financial Services and Markets Bill in Parliament
The Government has introduced the Financial Services and Markets Bill into Parliament. The Bill was introduced on 20 July and had its first reading, but no date was set for the second reading. In his first Mansion House...
ESMA updates fund marketing questions
ESMA has updated its FAQs on the AIFMD and UCITS Directive: on the AIFMD, the most interesting new question seeks clarification on who is responsible for compliance with the marketing provisions in the AIFMD when an AIF...
PSR annual report focuses on “protecting people”
On the 19th July the PSR released its annual report for 2021/2022, and outlined how it has helped the public in the past year. During the year, the PSR: imposed its biggest ever fine (for cartel behaviour in the prepaid...
FCA publishes Annual Report
FCA has published its Annual Report and supporting papers. It highlighted: how nearly 600,000 people are paying less in interest and charges on credit card debt following rule changes; how further rule changes have...
Complaints Commissioner publishes Annual Report
In this year’s report by the Complaints Commissioner dealing with complaints against the Financial Services Regulators, Amerdeep Somal outlines what her office dealt with, and how it compared to last year. 935...
FCA fines failed firm for financial crime failings
FCA has fined the TJM Partnership, which is now in liquidation, £2,038,700 for financial crime compliance failings in cum-ex trading business. This is the third fine in this area, and the largest. FCA found the firm...
Gibraltar added to High Risk Third Countries from 11 July
The latest Government advisory on High Risk Third Countries has added Gibraltar to the list with effect from 11 July, and removed Malta. The UK list continues to mirror the FATF list. The full list is now Albania...
FCA updates on change in control delays
FCA is still suffering significant delays in allocating case officers for CiC notifications. It has recruited more staff but there is still around 6 weeks between submission of an application and allocation to a case...
FCA agrees end to unauthorised deposit taker case
FCA started court proceedings in December 2019 against Bright Management Solution Limited, which it alleged was operating an unauthorised deposit taking scheme. The matter was due to come to trial this month, but a...
UK sanctions more Russian oligarchs
New sanctions under the Russian regime designate more individuals within Vladimir Putin’s inner circle, including Russia’s second richest man, and a relation to Putin’s who is president of a large...
OFSI fines company for employee flight sanctions breach
OFSI has updated its table of monetary penalties for sanctions breaches. The table now reflects a fine on Tracerco Limited, a company operating in the energy sector, which has been fined £15,000 for making funds...
FCA Portfolio Strategy letter for lifetime mortgage providers
FCA has published its Dear CEO letter for the lifetime mortgage provider sector. Its last letter was in October 2020. The latest letter: highlights (as other sectoral letters have done) the impact on vulnerable...
FCA publishes portfolio letter to debt advice firms
FCA has published its Dear CEO letter to the debt advice portfolio, updating its letter of 2020. Most of the messages are similar to those it has given to the mainstream consumer credit lenders, specifically the focus...
FCA fines Ghana International Bank for correspondent banking DD failings
FCA has fined Ghana International Bank nearly £6m for failings in its financial crime prevention controls in respect of its correspondent banking business. It found that, for a 5 year period to the end of 2016, it did...
FCA fines JLT for more bribery control failings
FCA has levied a second fine on insurance broker JLT Speciality Ltd for financial crime control failings. The £7,881,700 fine follows a previous fine of nearly £2m in December 2013 for similar failings. Following...
Outcomes of FATF plenary
The latest FATF Plenary meeting took place from 14-17 June. At it, FATF agreed to severely limit the role of Russia and its influence in FATF; approved a report to help the real estate sector better detect and prevent...
Treasury confirms BNPL proposals
Treasury has published its consultation response to its plans for regulating the buy-now-pay-later credit market. It has confirmed that: lenders offering BNPL will need to be authorised by FCA; lenders will need to...
FCA to delay PEMC review
FCA was due to carry out its post-implementation review of its requirements to help customers with serious pre-existing medical conditions to get travel insurance and report by October. It has decided to delay its...
FPC withdraws mortgage affordability test
FPC has confirmed that it will withdraw its Recommendation on mortgage affordability with effect from 1 August. The current test specifies a stress interest rate for lenders when assessing borrowers’ ability to...
Treasury Committee to question OFSI on sanctions effectiveness
The Treasury Committee is to question OFSI as part of its inquiry into effective economic sanctions on Russia. The session will take place on 22 June and is likely to include discussion on the challenges of implementing...
NCA updates SAR Glossary codes
NCA has published updated guidance on SAR Glossary Codes and Reporting Routes. The booklet follows the familiar form, providing: a checklist aimed at establishing whether the circumstances require immediate attention...
FCA to authorise largest funeral plan providers
FCA has published a list of 24 of the largest funeral plan providers who it intends to authorise with effect from 29 July, when funeral plan regulation takes effect. It is still considering applications from a number...
Treasury Committee reports on future of financial services regulation
The Treasury Committee has warned the Government that, in looking at the opportunities for regulatory reform and considering what it can offer, it must take care to ensure that competitiveness does not become the...
Treasury feeds back on MLR changes
Treasury has published the feedback on its consultation from last summer on amendments to the MLRs. It has now analysed the responses to the consultation, made the legislative changes, and most of the changes will take...
EBA publishes MLRO role guidelines
EBA has published its final guidelines on the role and responsibilities of the officer in charge of compliance with AML and CTF and of the management body of credit and financial institutions. As ever, the Guidelines...
Parliament launches post-Brexit regulatory divergence inquiry
The European Scrutiny Committee has launched an inquiry looking at the benefits and challenges to business and the UK economy of diverging from EU regulation that was copied into UK law post-Brexit. Financial services...
FATF publishes UK follow up report
FATF has carried out its latest assessment of the UK’s compliance with its Recommendations, following the 2018 report. FATF says the report from the UK on the actions taken since the last evaluation has enabled it...
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